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Intergenerational Mobility and Preferences for Redistribution

American Economic Review 2018 108(2), 521-554
Using new cross-country survey and experimental data, we investigate how beliefs about intergenerational mobility affect preferences for redistribution in France, Italy, Sweden, the United Kingdom, and the United States. Americans are more optimistic than Europeans about social mobility. Our randomized treatment shows pessimistic information about mobility and increases support for redistribution, mostly for “equality of opportunity” policies. We find strong political polarization. Left-wing respondents are more pessimistic about mobility: their preferences for redistribution are correlated with their mobility perceptions; and they support more redistribution after seeing pessimistic information. None of this is true for right-wing respondents, possibly because they see the government as a “problem” and not as the “solution.”

The Political Effects of Immigration: Culture or Economics?

Journal of Economic Literature 2024 62(1), 5-46
We review the growing literature on the political economy of immigration. First, we discuss the effects of immigration on a wide range of political and social outcomes. The existing evidence suggests that immigrants often, but not always, trigger backlash, increasing support for anti-immigrant parties and lowering preferences for redistribution and diversity among natives. Next, we unpack the channels behind the political effects of immigration, distinguishing between economic and noneconomic forces. In examining the mechanisms, we highlight important mediating factors, such as misperceptions, the media, and the conditions under which intergroup contact occurs. We also outline promising avenues for future research.

Culture and Institutions

Journal of Economic Literature 2015 53(4), 898-944 open access
A growing body of empirical work measuring different types of cultural traits has shown that culture matters for a variety of economic outcomes. This paper focuses on one specific aspect of the relevance of culture: its relationship to institutions. We review work with a theoretical, empirical, and historical bent to assess the presence of a two-way causal effect between culture and institutions.

A Positive Theory of Fiscal Deficits and Government Debt

Review of Economic Studies 1990 57(3), 403 open access
This paper considers an economy in which policymakers with different preferences alternate in office as a result of elections. Government debt is used strategically by each policymaker to influence the choices of his successors. If different policymakers disagree about the desired composition of government spending between two public goods, the economy exhibits a deficits bias; that is, debt accumulation is higher than it would be with a social planner. The equilibrium level of debt is larger the larger is the degree of polarization between alternating governments and the less likely it is that the current government will be re-elected.

Fairness and Redistribution: Reply

American Economic Review 2013 103(1), 554-561 open access
This paper responds to the comment of Di Tella and Dubra (2013). We first clarify that the model of Alesina and Angeletos (2005) admits two distinct types of multiplicity: one that is at the core of their contribution, and a separate one that is at work in Di Tella and Dubra's example. We then proceed to show how Alesina and Angeletos's results are robust to alternative specifications of the voting mechanism.

The Politics of Ambiguity

Quarterly Journal of Economics 1990 105(4), 829
Politicians face a trade-off between the policies that maximize their chances of reelection and their most preferred policies (or the policies most preferred by the constituency which they represent). This paper analyzes this trade-off in a dynamic electoral model in which the voters are not fully informed about the preferences of the incumbent. First, we show that the incumbent follows a policy which is intermediate between the other party's ideal policy and his own ideal policy. Second, we show that, often, the incumbent has an incentive to choose procedures which make it difficult for voters to pinpoint his preferences with absolute precision. Thus, politicians may prefer to be “ambiguous.”

A Theory of Divided Government

Econometrica 1996 64(6), 1311 open access
This paper extends the spatial theory of voting to the case in which policy choices depend upon the interaction between executive and the legislature. Voters are strategic and to analyze equilibrium the authors apply 'coalition proof' type refinements. The model has implications consistent with voting behavior in the United States: (1) split-ticket with some voters choosing one party for the presidency and the other for Congress; (2) for some parameter values, a divided government with different parties controlling the executive and the majority of the legislature; and (3) the mid-term electoral cycle with the party holding the presidency always losing votes in mid-term legislative elections.

Segregation and the Quality of Government in a Cross Section of Countries

American Economic Review 2011 101(5), 1872-1911 open access
We provide a new compilation of data on ethnic, linguistic, and religious composition at the subnational level for a large number of countries. Using these data, we measure segregation of groups within the country. To overcome the endogeneity problem that arises because of mobility and endogenous internal borders, we construct an instrument for segregation. We find that more ethnically and linguistically segregated countries, i.e., those where groups live more spatially separately, have a lower quality of government; there is no relationship between religious segregation and governance. Trust is an important channel of influence; it is lower in more segregated countries.

Bureaucrats or Politicians? Part I: A Single Policy Task

American Economic Review 2007 97(1), 169-179 open access
This paper investigates the normative criteria that guide the allocation of a policy task to an elected politician versus an independent bureaucrat. The bureaucrat is preferable for technical tasks for which ability is more important than effort, or if there is great uncertainty about whether the policymaker has the required abilities. The optimal allocation of redistributive tasks is ambiguous, and depends on how the bureaucrat can be instructed. But irrespective of the normative conclusion, the politician prefers not to delegate redistributive policies.

Bureaucrats or Politicians? Part I: A Single Policy Task

American Economic Review 2007 97(1), 169-179 open access
This paper investigates the normative criteria that guide the allocation of a policy task to an elected politician versus an independent bureaucrat. The bureaucrat is preferable for technical tasks for which ability is more important than effort, or if there is great uncertainty about whether the policymaker has the required abilities. The optimal allocation of redistributive tasks is ambiguous, and depends on how the bureaucrat can be instructed. But irrespective of the normative conclusion, the politician prefers not to delegate redistributive policies.