Tag: Indonesia
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What 1980s Economists Can Teach Southeast Asia Today: Median Voters, Redistribution & Debt
In 1981 Allan Meltzer and Scott Richard published a paper that has been taught in a political economics class at MIT. Their simple model starts with two observations. When the median voter decides the tax rate under majority rule, the size of government is struggling by the force between mean income and the median voter’s income. If…