Pá 21.09.2018 | 14:00 | Micro Theory Research Seminar

Prof. Micael Castanheira (ULB, Belgium) “Electoral Systems and Inequalities in Government Interventions”

Pá 21.09.2018

Prof. Micael Castanheira (ULB, Belgium) “Electoral Systems and Inequalities in Government Interventions”

Prof. Micael Castanheira

Université Libre de Bruxelles, Belgium

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Authors: Laurent Bouton, Micael Castanheira, and Garance Genicot

Abstract: This paper revisits the economic effects of constitutions. We propose a model of governmental resource allocation under political competition and contrast majoritarian and proportional representation systems.

We derive predictions regarding the relationship between local --sub-district-- level characteristics and inequality in government intervention. Looking at a local level and introducing heterogeneity allows us to uncover a novel sprinkling effect of electoral competition. This effect can incentivize politician to allocate resources more equally under multi-district majoritarian elections than under proportional representation.

We identify conditions under which this effect more-than-offsets the incentive to target swing districts identified in the literature. Finally, we explore implications for the size of government, the trade-off between targeted transfers and global public goods, and potential reforms of the US Electoral College.

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