Access

You are not currently logged in.

Access JSTOR through your library or other institution:

login

Log in through your institution.

Inefficiency in Legislative Policymaking: A Dynamic Analysis

Marco Battaglini and Stephen Coate
The American Economic Review
Vol. 97, No. 1 (Mar., 2007), pp. 118-149
Stable URL: http://www.jstor.org/stable/30034387
Page Count: 32
  • Download ($10.00)
  • Subscribe ($19.50)
  • Cite this Item
Inefficiency in Legislative Policymaking: A Dynamic Analysis
Preview not available

Abstract

This paper develops an infinite horizon model of public spending and taxation in which policy decisions are determined by legislative bargaining. The policy space incorporates both productive and distributive public spending and distortionary taxation. The productive spending is investing in a public good that benefits all citizens (e.g., national defense) and the distributive spending is district-specific transfers (e.g., pork-barrel spending). Investment in the public good creates a dynamic linkage across policymaking periods. The analysis explores the dynamics of legislative policy choices, focusing on the efficiency of the steady-state level of taxation and allocation of spending.

Page Thumbnails

  • Thumbnail: Page 
118
    118
  • Thumbnail: Page 
119
    119
  • Thumbnail: Page 
120
    120
  • Thumbnail: Page 
121
    121
  • Thumbnail: Page 
122
    122
  • Thumbnail: Page 
123
    123
  • Thumbnail: Page 
124
    124
  • Thumbnail: Page 
125
    125
  • Thumbnail: Page 
126
    126
  • Thumbnail: Page 
127
    127
  • Thumbnail: Page 
128
    128
  • Thumbnail: Page 
129
    129
  • Thumbnail: Page 
130
    130
  • Thumbnail: Page 
131
    131
  • Thumbnail: Page 
132
    132
  • Thumbnail: Page 
133
    133
  • Thumbnail: Page 
134
    134
  • Thumbnail: Page 
135
    135
  • Thumbnail: Page 
136
    136
  • Thumbnail: Page 
137
    137
  • Thumbnail: Page 
138
    138
  • Thumbnail: Page 
139
    139
  • Thumbnail: Page 
140
    140
  • Thumbnail: Page 
141
    141
  • Thumbnail: Page 
142
    142
  • Thumbnail: Page 
143
    143
  • Thumbnail: Page 
144
    144
  • Thumbnail: Page 
145
    145
  • Thumbnail: Page 
146
    146
  • Thumbnail: Page 
147
    147
  • Thumbnail: Page 
148
    148
  • Thumbnail: Page 
149
    149