Public Finance and Right-Wing Populism

29 Pages Posted: 10 Oct 2017

See all articles by Lovisa Persson

Lovisa Persson

Research Institute of Industrial Economics (IFN)

Linuz Aggeborn

Uppsala University - Department of Government

Date Written: October 5, 2017

Abstract

We build a public finance model that explains why voters vote for rightwing populists, and also under which conditions established politicians will adopt a right-wing populist policy platform. Voters with lower private income have a stronger demand for basic public services at the expense of spending on a global good; generosity of refugee support systems, foreign aid, and environmental protection. Low income voters are thus more prone to support right-wing populists who oppose spending on such global goods. We conclude that established politicians that are challenged by right-wing populists will implement a policy with no global good spending if the relative cost of the global good is high enough. Additionally, adoption of right-wing populist policy is more likely when the economy is in a recession.

Keywords: Right-wing populism, Agency, Immigration

JEL Classification: D72, H39, D70

Suggested Citation

Persson, Lovisa and Aggeborn, Linuz, Public Finance and Right-Wing Populism (October 5, 2017). IFN Working Paper No. 1182, Available at SSRN: https://ssrn.com/abstract=3050461

Lovisa Persson (Contact Author)

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

Linuz Aggeborn

Uppsala University - Department of Government

Box 514
Uppsala, 75120
Sweden

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