Electoral Systems and Inequalities in Government Interventions

52 Pages Posted: 29 Oct 2018 Last revised: 16 May 2021

See all articles by Garance Genicot

Garance Genicot

Georgetown University - Department of Economics

Laurent Bouton

Georgetown University - Department of Economics

Micael Castanheira

Université Libre de Bruxelles (ULB) - European Center for Advanced Research in Economics and Statistics (ECARES); Centre for Economic Policy Research (CEPR)

Date Written: October 2018

Abstract

This paper studies the political determinants of inequality in government interventions under the majoritarian and proportional representation systems. Using a model of electoral competition with targetable government intervention and heterogeneous localities, we uncover a novel relative electoral sensitivity effect in majoritarian systems. This effect, which depends on the geographic distribution of voters, can incentivize parties to allocate resources more equally under majoritarian systems than proportional representation systems. This contrasts with the conventional wisdom that government interventions are more unequal in majoritarian systems.

Suggested Citation

Genicot, Garance and Bouton, Laurent and Castanheira, Micael, Electoral Systems and Inequalities in Government Interventions (October 2018). NBER Working Paper No. w25205, Available at SSRN: https://ssrn.com/abstract=3274431

Garance Genicot (Contact Author)

Georgetown University - Department of Economics ( email )

Washington, DC 20057
United States
202-687-7144 (Phone)
202-687-6102 (Fax)

HOME PAGE: http://www.georgetown.edu/faculty/gg58

Laurent Bouton

Georgetown University - Department of Economics ( email )

Washington, DC 20057
United States

Micael Castanheira

Université Libre de Bruxelles (ULB) - European Center for Advanced Research in Economics and Statistics (ECARES) ( email )

Ave. Franklin D Roosevelt, 50 - C.P. 114
Brussels, B-1050
Belgium
+32 2 650 4467 (Phone)
+32 2 650 3369 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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