[go: up one dir, main page]
More Web Proxy on the site http://driver.im/
IDEAS home Printed from https://ideas.repec.org/p/exe/wpaper/1802.html
   My bibliography  Save this paper

Office-Holding Premia and Representative Democracy

Author

Listed:
  • Jan Auerbach

    (Department of Economics, University of Exeter)

Abstract
I consider a policy issue stylized as redistribution in a representative democracy in which holding o ce o ers an income premium. Predominance of high earners in the legislature likely implies that not a single lawmaker shares the policy preferences of lower- income citizens, because it arises in only two ways. First, chance favors high-income candidates while in the majority of districts, the strict majority of political candidates are lower-income citizens, which seems counterfactual. Second, high o ce-holding premia induce legislators from all backgrounds to oppose redistribution once in o ce. Either legislators are recruited from an elite, or some forget where they came from.

Suggested Citation

  • Jan Auerbach, 2018. "Office-Holding Premia and Representative Democracy," Discussion Papers 1802, University of Exeter, Department of Economics.
  • Handle: RePEc:exe:wpaper:1802
    as

    Download full text from publisher

    File URL: https://exetereconomics.github.io/RePEc/dpapers/DP1802.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Timothy Besley, 2004. "Joseph Schumpeter Lecture: Paying Politicians: Theory and Evidence," Journal of the European Economic Association, MIT Press, vol. 2(2-3), pages 193-215, 04/05.
    2. Daniel Diermeier & Michael Keane & Antonio Merlo, 2005. "A Political Economy Model of Congressional Careers," American Economic Review, American Economic Association, vol. 95(1), pages 347-373, March.
    3. Ruben Durante & Louis Putterman & Joël Weele, 2014. "Preferences For Redistribution And Perception Of Fairness: An Experimental Study," Journal of the European Economic Association, European Economic Association, vol. 12(4), pages 1059-1086, August.
    4. Mattozzi, Andrea & Snowberg, Erik, 2018. "The right type of legislator: A theory of taxation and representation," Journal of Public Economics, Elsevier, vol. 159(C), pages 54-65.
    5. Corneo, Giacomo & Gruner, Hans Peter, 2002. "Individual preferences for political redistribution," Journal of Public Economics, Elsevier, vol. 83(1), pages 83-107, January.
    6. Mattozzi, Andrea & Merlo, Antonio, 2008. "Political careers or career politicians?," Journal of Public Economics, Elsevier, vol. 92(3-4), pages 597-608, April.
    7. Carnes, Nicholas & Lupu, Noam, 2016. "Do Voters Dislike Working-Class Candidates? Voter Biases and the Descriptive Underrepresentation of the Working Class," American Political Science Review, Cambridge University Press, vol. 110(4), pages 832-844, November.
    8. Boadway, Robin & Marchand, Maurice, 1995. "The Use of Public Expenditures for Redistributive Purposes," Oxford Economic Papers, Oxford University Press, vol. 47(1), pages 45-59, January.
    9. Panu Poutvaara & Tuomas Takalo, 2007. "Candidate quality," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 14(1), pages 7-27, February.
    10. Levitt, Steven D, 1996. "How Do Senators Vote? Disentangling the Role of Voter Preferences, Party Affiliation, and Senate Ideology," American Economic Review, American Economic Association, vol. 86(3), pages 425-441, June.
    11. Kaisa Kotakorpi & Panu Poutvaara & Marko Terviö, 2017. "Returns to Office in National and Local Politics: A Bootstrap Method and Evidence from Finland," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 33(3), pages 413-442.
    12. Timothy Besley & Stephen Coate, 1997. "An Economic Model of Representative Democracy," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(1), pages 85-114.
    13. Scott Gehlbach & Konstantin Sonin & Ekaterina Zhuravskaya, 2010. "Businessman Candidates," American Journal of Political Science, John Wiley & Sons, vol. 54(3), pages 718-736, July.
    14. Eggers, Andrew C. & Hainmueller, Jens, 2009. "MPs for Sale? Returns to Office in Postwar British Politics," American Political Science Review, Cambridge University Press, vol. 103(4), pages 513-533, November.
    15. Lohmann, Susanne, 1998. "An Information Rationale for the Power of Special Interests," American Political Science Review, Cambridge University Press, vol. 92(4), pages 809-827, December.
    16. David S. Lee & Enrico Moretti & Matthew J. Butler, 2004. "Do Voters Affect or Elect Policies? Evidence from the U. S. House," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(3), pages 807-859.
    17. Glenn Parker & Suzanne Parker, 2009. "Earning through learning in legislatures," Public Choice, Springer, vol. 141(3), pages 319-333, December.
    18. Timothy Besley & Stephen Coate, 2001. "Lobbying and Welfare in a Representative Democracy," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 68(1), pages 67-82.
    19. Besley, Timothy & Coate, Stephen, 2008. "Issue Unbundling via Citizens' Initiatives," Quarterly Journal of Political Science, now publishers, vol. 3(4), pages 379-397, December.
    20. Besley, Timothy & Coate, Stephen, 1991. "Public Provision of Private Goods and the Redistribution of Income," American Economic Review, American Economic Association, vol. 81(4), pages 979-984, September.
    21. Martin J. Osborne & Al Slivinski, 1996. "A Model of Political Competition with Citizen-Candidates," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 111(1), pages 65-96.
    22. Stefano Gagliarducci & Tommaso Nannicini, 2013. "Do Better Paid Politicians Perform Better? Disentangling Incentives From Selection," Journal of the European Economic Association, European Economic Association, vol. 11(2), pages 369-398, April.
    23. Richard Van Weelden, 2013. "Candidates, Credibility, and Re-election Incentives," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 80(4), pages 1622-1651.
    24. Nathan J. Kelly & Peter K. Enns, 2010. "Inequality and the Dynamics of Public Opinion: The Self‐Reinforcing Link Between Economic Inequality and Mass Preferences," American Journal of Political Science, John Wiley & Sons, vol. 54(4), pages 855-870, October.
    25. Andreas Peichl & Nico Pestel & Sebastian Siegloch, 2013. "The politicians’ wage gap: insights from German members of parliament," Public Choice, Springer, vol. 156(3), pages 653-676, September.
    26. Carnes, Nicholas & Hansen, Eric R., 2016. "Does Paying Politicians More Promote Economic Diversity in Legislatures?," American Political Science Review, Cambridge University Press, vol. 110(4), pages 699-716, November.
    27. Simeon Djankov & Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 2010. "Disclosure by Politicians," American Economic Journal: Applied Economics, American Economic Association, vol. 2(2), pages 179-209, April.
    28. John Duggan, 2000. "Repeated Elections with Asymmetric Information," Economics and Politics, Wiley Blackwell, vol. 12(2), pages 109-135, July.
    29. Konstantin Sonin & Scott Gehlbach, 2004. "Businessman Candidates," Econometric Society 2004 North American Summer Meetings 178, Econometric Society.
    30. Ernesto Dal Bó & Frederico Finan & Olle Folke & Torsten Persson & Johanna Rickne, 2017. "Who Becomes A Politician?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 132(4), pages 1877-1914.
    31. Perotti, Roberto, 1996. "Growth, Income Distribution, and Democracy: What the Data Say," Journal of Economic Growth, Springer, vol. 1(2), pages 149-187, June.
    32. Bernhardt, Dan & Campuzano, Larissa & Squintani, Francesco & Câmara, Odilon, 2009. "On the benefits of party competition," Games and Economic Behavior, Elsevier, vol. 66(2), pages 685-707, July.
    33. Meltzer, Allan H & Richard, Scott F, 1981. "A Rational Theory of the Size of Government," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 914-927, October.
    34. Colin M. Campbell, 1999. "Large Electorates and Decisive Minorities," Journal of Political Economy, University of Chicago Press, vol. 107(6), pages 1199-1217, December.
    35. John D. Huber & Michael M. Ting, 2013. "Redistribution, Pork, And Elections," Journal of the European Economic Association, European Economic Association, vol. 11(6), pages 1382-1403, December.
    36. Gagliarducci, Stefano & Nannicini, Tommaso & Naticchioni, Paolo, 2010. "Moonlighting politicians," Journal of Public Economics, Elsevier, vol. 94(9-10), pages 688-699, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Auerbach, Jan, 2022. "Productive Office and Political Elitism," MPRA Paper 114582, University Library of Munich, Germany.
    2. Heléne Berg, 2018. "Politicians' Payments in a Proportional Party System," CESifo Working Paper Series 7278, CESifo.
    3. Berg, Helene, 2018. "Politicians’ Payments in a Proportional Party System," Research Papers in Economics 2018:3, Stockholm University, Department of Economics.
    4. Andreas Peichl & Nico Pestel & Sebastian Siegloch, 2013. "The politicians’ wage gap: insights from German members of parliament," Public Choice, Springer, vol. 156(3), pages 653-676, September.
    5. Braendle, Thomas, 2013. "Do Institutions Affect Citizens' Selection into Politics?," Working papers 2013/04, Faculty of Business and Economics - University of Basel.
    6. Berg, Heléne, 2018. "Is It Worth It? On the Returns to Holding Political Office," Research Papers in Economics 2018:5, Stockholm University, Department of Economics.
    7. Heléne Berg, 2018. "Is It Worth It? On the Returns to Holding Political Office," CESifo Working Paper Series 7406, CESifo.
    8. Berg, Heléne, 2020. "Politicians’ payments in a proportional party system," European Economic Review, Elsevier, vol. 128(C).
    9. Braendle, Thomas & Stutzer, Alois, 2016. "Selection of public servants into politics," Journal of Comparative Economics, Elsevier, vol. 44(3), pages 696-719.
    10. Geys, Benny & Mause, Karsten, 2011. "Moonlighting politicians: A survey and research agenda," Discussion Papers, Research Professorship & Project "The Future of Fiscal Federalism" SP II 2011-101, WZB Berlin Social Science Center.
    11. Thomas Braendle & Alois Stutzer, 2017. "Voters and Representatives: How Should Representatives Be Selected?," CREMA Working Paper Series 2017-05, Center for Research in Economics, Management and the Arts (CREMA).
    12. Kaisa Kotakorpi & Panu Poutvaara & Marko Tervio, 2013. "Returns to office in national and local politics," Discussion Papers 86, Aboa Centre for Economics.
    13. Pande, Rohini, 2008. "Understanding Political Corruption in Low Income Countries," Handbook of Development Economics, in: T. Paul Schultz & John A. Strauss (ed.), Handbook of Development Economics, edition 1, volume 4, chapter 50, pages 3155-3184, Elsevier.
    14. Galasso, Vincenzo & Nannicini, Tommaso, 2011. "Competing on Good Politicians," American Political Science Review, Cambridge University Press, vol. 105(1), pages 79-99, February.
    15. Heléne Lundqvist, 2013. "Is it worth it? On the returns to holding political office," Working Papers 2013/14, Institut d'Economia de Barcelona (IEB).
    16. Palguta, Ján & Pertold, Filip, 2021. "Political salaries, electoral selection and the incumbency advantage: Evidence from a wage reform," Journal of Comparative Economics, Elsevier, vol. 49(4), pages 1020-1047.
    17. Berg, Heléne, 2020. "On the returns to holding political office (Is it worth it?)," Journal of Economic Behavior & Organization, Elsevier, vol. 178(C), pages 840-865.
    18. Mattozzi, Andrea & Snowberg, Erik, 2018. "The right type of legislator: A theory of taxation and representation," Journal of Public Economics, Elsevier, vol. 159(C), pages 54-65.
    19. Timothy Besley & Rohini Pande & Vijayendra Rao, 2005. "Political Selection and the Quality of Government: Evidence from South India," STICERD - Political Economy and Public Policy Paper Series 08, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    20. César Martinelli & John Duggan, 2014. "The Political Economy of Dynamic Elections: A Survey and Some New Results," Working Papers 1403, Centro de Investigacion Economica, ITAM.

    More about this item

    Keywords

    Representative Democracy; Legislature; Legislators; Representatives; Representation; Policy Preferences; Citizen-Candidates; Office-Holding Premia; Redistribution.;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:exe:wpaper:1802. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sebastian Kripfganz (email available below). General contact details of provider: https://edirc.repec.org/data/deexeuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.