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Elite capture of democratic politics: The role of social identity

Juarez-Luna, David and Ghiglino, Christian (2014) Elite capture of democratic politics: The role of social identity. [UNSPECIFIED]


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In the present paper we uncover a novel mechanism through which a minority can gain a disproportionate power in a perfectly functioning democracy, decides on a unique redistributive instrument, the tax rate. We show that a minority characterised by a high degree of social identification may, in the presence of ideological motives, influence the policy outcome. In particular, a rise in social identification among the rich minority may be able to reduce the tax rate. Importantly, this may happen even if the minority is more ideological than the majority. Finally, we attempt an explanation of the divide in the tax rate between the US and Europe.

Uncontrolled Keywords: HB;
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Social Sciences > Economics, Department of
Depositing User: Jim Jamieson
Date Deposited: 28 Aug 2014 18:53
Last Modified: 15 Dec 2017 16:15

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