Racism, Xenophobia and Distribution

Abstract : We model political competition as a contest between parties that represent constituents, and which announce policies in a two-dimensional policy space; the first dimension concerns the degree of redistribution, and the second, the race or immigration issue. Given the distribution of voter preferences on this space, a political equilibrium is determined. We study the effect that racist or anti-immigrant preferences in the polity have on equilibrium values of the redistributive policy. For the United States, there is a substantial reduction in distribution below what it counterfactually would have been, absent racism. For the UK, France, and Denmark, there are effects of the same sign, but with different magnitudes.
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Submitted on : Tuesday, November 20, 2012 - 8:46:24 AM
Last modification on : Tuesday, August 6, 2019 - 11:38:50 AM

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Woojin Lee, John E. Roemer, Karine van der Straeten. Racism, Xenophobia and Distribution. Journal of the European Economic Association, Wiley, 2006, 4 (2-3), pp.446-454. ⟨10.1162/jeea.2006.4.2-3.446⟩. ⟨halshs-00754163⟩

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