Median Voter and Power Resources Revisited: A Composite Model of Inequality

37 Pages Posted: 15 Nov 2013

See all articles by Mathew Y. H. Wong

Mathew Y. H. Wong

University of Essex - Department of Government; The University of Hong Kong - Department of Politics and Public Administration

Date Written: November 15, 2013

Abstract

This paper explains redistribution and income inequality by revisiting traditional approaches. Despite the popularity of two dominant theories, the median voter hypothesis (the Meltzer-Richard model) and power resources theory, they are thought to have contrasting predictions and have seldom been incorporated under a single framework. I develop a composite model of inequality by accommodating their core arguments. This study also analyzes stages of inequality formation, such as market wage inequality and redistribution, and adds in a dynamic component to the model, completing the cycle of income distribution. The model is supported empirically with data from 18 OECD countries from 1970 to 2006. I demonstrate the joint relevance and significance of the two theories, showing that they are not necessarily mutually exclusive and should be properly addressed from both theoretical perspectives.

Keywords: inequality, redistribution, median voter theory, power resources theory

JEL Classification: H53, I30

Suggested Citation

Wong, Mathew Y. H., Median Voter and Power Resources Revisited: A Composite Model of Inequality (November 15, 2013). Available at SSRN: https://ssrn.com/abstract=2354856 or http://dx.doi.org/10.2139/ssrn.2354856

Mathew Y. H. Wong (Contact Author)

University of Essex - Department of Government ( email )

Wivenhoe Park
Colchester CO4 3SQ, CO4 3SQ
United Kingdom

The University of Hong Kong - Department of Politics and Public Administration ( email )

Pokfulam Road
Centennial Campus
Hong Kong, Pokfulam HK
Hong Kong

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