Publication: Divide the dollar, a model of interregional redistributive politics
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2000
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Abstract
We develop a dynamic political model of dividing a fixed amount of money among n districts. There are two political parties that make proposal 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.
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Interregional distribution, Political competition, Dynamic competition