In this paper we study whether majority voting equilibria exist when preferences over public policies are not single-peaked. The government levies a proportional income tax. Tax revennues is used to finance a uniform lump-sum transfer and public education.
Individuals vote on the composition of the government budget.
We show that the single-crossing property cannot be invoked to establish existence of a majority voting equilibrium. Paper provided by Michigan State - Econometrics and Economic Theory in its series Papers with number 9903. To our knowledge, this item is not available for download. Check on the provider's web page whether it is in fact available.