Divide the dollar, a model of interregional redistributive politics
- Ortuño Ortín, Ignacio
- Schultz, Christian
Year of publication: 2000
Issue: 28
Type: Working paper
Abstract
We develop a dynamic political model of dividing a fixed amount of money among n districts. There are two political parties that make proposals on such divisions and compete in each district. Each district elects a representative to a legislature. Each party is governed by its representatives who are elected to the legislature. Voters are myopic and there is a slight incumbency advantage. We show that if all districts are of the same size then they all get the same share in the long run.