Do Politicians Serve the One Percent? Evidence from OECD Countries
CITYPERC Working Paper Series No. 2013/04
58 Pages Posted: 22 Feb 2013
Date Written: February 1, 2013
Present social movements, as “Occupy Wall Street” or the Spanish “Indignados”, claim that politicians work for an economic elite, the 1%, that drives the world economic policies. In this paper we show through econometric analysis that these movements are accurate: politicians in OECD countries maximize the happiness of the economic elite. In 2009 center-right parties maximized the happiness of the 100th-98th richest percentile and center-left parties the 100th-95th richest percentile. The situation has evolved from the seventies when politicians represented, approximately, the median voter.
Keywords: representation, economic elite, political economy, Occupy Wall Street, CITYPERC
JEL Classification: P16
Suggested Citation: Suggested Citation