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- W2244113229 abstract "In this paper, we develop a simple theoretical model in order to explain how politicians choosebetween progressive and regressive tax schemes that serve to afford some local service productioncosts. It consists of a bipartisan model in which each party.s preferences are lexicographic, givingpriority to winning but following ideological preferences given that it wins. Concerning voters, thismodel distinguishes for the first time in the literature between pragmatic majorities and social ones,and predicts what happens when both majorities have the same ideological sign and what happenswhen these majorities are in conflict. .Pragmatic. refers to local-specific considerations regardinggeneral performance of the government while .social. makes reference to issues related to voters.wealth status and social class. While party.s identity follows from pragmatic considerations, taxpolicies becomes a moderate equilibrium between ideological ruling party.s preferences and socialmajority.s ones. A tax policy would be extreme (either progressive or conservative) if and only ifboth social majority and pragmatic majority (ruling party) are of the same ideological sign. Thesepredictions are successfully tested by Tobit regression through the use of a wide sample ofmunicipalities concerning waste collection and treatment service-specific deficits." @default.
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- W2244113229 date "2006-01-01" @default.
- W2244113229 modified "2023-10-09" @default.
- W2244113229 title "Machiavellian Taxation?: Political and economic determinants of public service financing" @default.
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