Suchergebnisse

Parties face a trade-off between motivating partisans to participate in the election and appealing to issue-oriented middle-of-the-road voters. We show that, consequently, parties may diverge from the median voters' preferred policy by sending ambiguous messages to voters which include announcements of alternative platforms. Moreover, surprisingly, an increase in the size of a partisan constituency may lead to platform convergence towards the median voters' preferred policy. We identify two conditions for this outcome. First, the electorate is sufficiently divided such that full convergence does not occur and, second, the majority of the non-partisan voters is more inclined to the party with increased support of partisans. Adapted from the source document.

Altruistic parents may transfer resources to their offspring by providing education, and by leaving bequests. We show that in the presence of wage taxation, a small bequest tax may improve efficiency in an overlapping-generations framework with only intended bequests, by enhancing incentives of parents to invest in their children's education. This result holds even if the wage tax rate is held constant when introducing bequest taxation. We also calculate an optimal mix of wage and bequest taxes with alternative parameter combinations. In all cases, the optimal wage tax rate is clearly higher than the optimal bequest tax rate, but the latter is generally positive when the required government revenue in the economy is sufficiently high.