Beliefs and errors in voting choices: A restatement of the theory of fiscal illusion

✍ Scribed by Richard Carter

• Book ID: 104628253
• Publisher: Springer US
• Year: 1982
• Tongue: English
• Weight: 957 KB
• Volume: 39
• Category: Article
• ISSN: 0048-5829
• DOI: 10.1007/bf00118792

✦ Synopsis

This paper reformulates the theory of fiscal illusion to make it more compatible with the medianvoter model of collective choice. It emphasizes the requirement that misperceptions about marginal tax-costs and benefits must be permanent to have any significant effect on the level of public expenditures. The Lancaster-Becker model of consumer demand is then used to demonstrate the peculiar effects of permanent misperceptions on consumer demand. It can be shown, for example, that other things being the same, a Republican who underestimates continuously the marginal benefits of public activities may demand more public goods than a Democrat who overestimates those same benefits in a permanent fashion. * Assistant professor of economics, University of Qu6bec. t I wish to thank the members of my dissertation committee especially professors G. Brennan and J. M. Buchanan for their encouragement and valuable comments. Special thanks are also due to professor G. B61anger who reviewed the final version of this paper. I am solely responsible for any remaining errors.