Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/111393
Authors: 
Dodlova, Marina
Giolbas, Anna
Year of Publication: 
2015
Series/Report no.: 
GIGA Working Papers 273
Abstract: 
The debate on whether democracy and inequality increase the level of redistribution in a country is still ongoing. We construct a model that predicts a higher probability of redistribution in democracies than in autocracies. Further, with higher initial inequality, there should be more redistribution in democracies but not necessarily in autocracies. We test these predictions using data on social transfers in developing countries for the period 1960-2010. We confirm that democracy increases redistribution and, to some extent, that there is more redistribution with rising inequality. Hence, on the basis of a direct measure of redistribution, we present evidence to confirm the median voter theorem.
Subjects: 
regime type
inequality
redistribution
median voter theorem
JEL: 
D72
H53
H75
Document Type: 
Working Paper

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