On the political and economic determinants of redistribution: Economic gains, ideological gains, or institutions?

Arbeitspapier

I describe a structural method to quantify the contribution of different elements of social choice to the level of redistribution. Estimating a DSGE model with microdata on the support for redistribution, I find that if voters disregarded their ideological views on welfare policies, redistribution in the US would increase 117%. Because ideology is a more important determinant of voting behavior than income, increasing voter turnout or capping campaign contributions would have a small effect on redistribution. Among the drivers of ideology, I find that racial animosity and distrust of the government contributes to a 80% and 44% smaller redistribution, respectively.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. WP 2022-47

Classification and Topics

• Classification: Wirtschaft ; Capitalist Systems: Political Economy ; Structure, Scope, and Performance of Government
• Subject: redistribution ; preferences for redistribution ; dynamic macro models of political-economy

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): De Souza, Gustavo
• Event: Veröffentlichung
• (who): Federal Reserve Bank of Chicago
• (where): Chicago, IL
• (when): 2022

Further information

• DOI: doi:10.21033/wp-2022-47
• Handle: http://hdl.handle.net/10419/268002
• Last update: 10.03.2025, 11:43 AM CET