Arbeitspapier

Compulsory Voting and Public Finance

Conventional wisdom suggests that compulsory voting lowers the influence of specialinterest groups and leads to policies that are better for less privileged citizens, who often abstain when voting is voluntary. To scrutinize this conventional wisdom, I study public goods provision and rents to special-interest groups in a probabilistic voting model with campaign contributions in which citizens can decide how much political information to acquire, and whether to vote or abstain. I find that compulsory voting, modeled as an increase in abstention costs, raises the share of poorly informed and impressionable voters, thereby making special-interest groups more influential and increasing their rents. Total government spending and taxes increase as well, while the effect on public goods provision is ambiguous. Compulsory voting may thus lead to policy changes that harm even less privileged citizens.

Language
Englisch

Bibliographic citation
Series: Working Paper ; No. 10.04

Classification
Wirtschaft
Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
Positive Analysis of Policy Formulation and Implementation
Public Economics: General
Subject
Compulsory Voting
Special-Interest Politics
Fiscal Policies
Wahlverhalten
Interessenpolitik
Finanzpolitik
Neue politische Ökonomie
Theorie

Event
Geistige Schöpfung
(who)
Hodler, Roland
Event
Veröffentlichung
(who)
Swiss National Bank, Study Center Gerzensee
(where)
Gerzensee
(when)
2010

Handle
Last update
10.03.2025, 11:41 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Hodler, Roland
  • Swiss National Bank, Study Center Gerzensee

Time of origin

  • 2010

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