Bribing votes: A new explanation to the``inequality-redistribution''puzzle in LDC's

F Docquier, E Tarbalouti - Public Choice, 2001 - Springer
Public Choice, 2001Springer
The recent empirical literature on redistribution and developmentemphasizes two main
evidences:(i) more redistribution generallyinduces higher growth rates and (ii) more
inequality does notnecessarily increase the political demand for redistribution. These
stylized facts are at odds with the correlations observedin developed countries. Several
theoretical arguments can beadvanced to explain these puzzles. In this paper, it is
shownthat``vote purchases''may be seen as an additional argument toexplain puzzle (ii). We …
Abstract
The recent empirical literature on redistribution and developmentemphasizes two main evidences: (i) more redistribution generallyinduces higher growth rates and (ii) more inequality does notnecessarily increase the political demand for redistribution.These stylized facts are at odds with the correlations observedin developed countries. Several theoretical arguments can beadvanced to explain these puzzles. In this paper, it is shownthat ``vote purchases'' may be seen as an additional argument toexplain puzzle (ii). We formalize this idea and examine theconditions under which vote bribes may be an obstacle toredistribution (and thus to growth) in a developing economy.
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