Efficiency, Welfare, and Political Competition

S-Tier
Journal: Quarterly Journal of Economics
Year: 2016
Volume: 131
Issue: 1
Pages: 461-518

Authors (2)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We study political competition in an environment in which voters have private information about their preferences. Our framework covers models of income taxation, public-goods provision, or publicly provided private goods. Politicians are vote-share maximizers. They can propose any policy that is resource-feasible and incentive-compatible. They can also offer special favors to subsets of the electorate. We prove two main results. First, the unique symmetric equilibrium is such that policies are surplus-maximizing and hence first-best Pareto-efficient. Second, there is a surplus-maximizing policy that wins a majority against any welfare-maximizing policy. Thus, in our model, policies that trade off equity and efficiency considerations are politically infeasible. JEL Codes: C72, D72, D82, H21, H41, H42.

Technical Details

RePEc Handle
repec:oup:qjecon:v:131:y:2016:i:1:p:461-518.
Journal Field
General
Author Count
2
Added to Database
2026-01-24