On the Relevance of the Median Voter to Resource Allocation Amongst Jurisdictions

This paper examines allocation of local public good over three jurisdictions with individuals with identical tastes and dierent incomes, in a model with democratic institutions and majority rule. If re-election from a jurisdiction requires 50% or more of the mandate, then the median voter (in income) in each jurisdiction determines the probability of re-election for the incumbent government. The jurisdiction with the median of these median voters is most favored. With identical median voters in jurisdictions, and with re-election not requiring exactly 50% or more of the mandate, the jurisdiction with the median income inequality benefits the most. JEL classifications: H41;H72