2008
DOI: 10.2139/ssrn.1130791
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Social Preferences and Redistribution under Direct Democracy

Abstract: There is growing evidence on the roles of fairness and social preferences as fundamental human motives, in general, as well as in voting contexts. In contrast, models of political economy are based on sel…sh-voters who derive utility solely from 'own'payo¤. We examine the implications of introducing voters with social preferences, as in Fehr and Schmidt (1999), in a simple general equilibrium model with endogenous labour supply. We demonstrate the existence of a Condorcet winner for voters, with heterogeneous … Show more

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