Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5059320 | Economics Letters | 2014 | 4 Pages |
Abstract
The classic democratic theory of redistribution claims that an increase in the mean-to-median (MM) income ratio causes a majority coalition in the electorate to collectively demand more redistribution. The functional dependence of redistribution on the MM income ratio is tested in parametric and nonparametric regression frameworks using an OECD panel dataset. While the parametric regression model is found to be misspecified rendering subsequent inference invalid, the robust nonparametric regression model fails to uncover evidence that the MM income ratio is relevant for predicting redistribution.
Related Topics
Social Sciences and Humanities
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Economics and Econometrics
Authors
Brandon Pecoraro,