Electoral Systems and Inequalities in Government Interventions
Electoral Systems and Inequalities in Government Interventions Garance Genicot∗ r Laurent Bouton∗ r Micael Castanheirax August 26, 2020 Abstract This paper studies the political determinants of inequalities in government interventions under majoritarian (MAJ) and proportional representation (PR) systems. We propose a model of electoral competition with highly targetable government interventions and heterogeneous localities. We uncover a novel relative electoral sensitivity effect that affects government interventions only under the majoritarian (MAJ) systems. This effect tends to reduce inequality in government interventions under MAJ systems when districts are composed of sufficiently homogeneous localities. This effect goes against the conventional wisdom that MAJ systems are necessarily more conducive to inequality than PR systems. We illustrate the empirical relevance of our results with numerical simulations on possible reforms of the U.S. Electoral College. JEL Classification Numbers: D72, H00 Keywords: Distributive Politics, Electoral Systems, Electoral College, Public Good, Inequality. Acknowledgements: We thank Timm Betz, Patrick Fran¸cois,Leyla Karakas, Alessandro Lizzeri, Dilip Mookherjee, Massimo Morelli, Nicola Persico, Amy Pond, and Debraj Ray, as well as seminar and con- ference participants at Princeton, Columbia, AMSE, MSU, Texas A&M, UBC, Bocconi, Collegio Carlo Alberto, ECARES, EUI, TSE, ETH Zurich, Copenhagen, CERGE-EI, Essex, King's College, Cornell PE Conference 2018, ThReD Conference 2018, Quebec PE Conference 2018, POLECON UK Annual Work- shop, CORE Belgian-Japanese Workshop, and the 13th Conference on Economic Growth and Development. Genicot acknowledges support from the National Science Foundation under grant SES-1851758. We are grateful to Juan Margitic and Dario Sansone for excellent research assistance. ∗Georgetown University, CEPR and NBER; xUniversit´eLibre de Bruxelles and CEPR.
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