Franchise Extension and Fiscal Structure in the United Kingdom 1820-1913: A New Test of the Redistribution Hypothesis

53 Pages Posted: 27 Feb 2020

See all articles by Toke Aidt

Toke Aidt

University of Cambridge - Faculty of Economics

Stanley L. Winer

Carleton University - School of Public Policy and Administration; Carleton University - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Peng Zhang

Simon Fraser University (SFU)

Date Written: 2020

Abstract

We study the effect of franchise extension on the fiscal structure of central and local governments in the United Kingdom between 1820 and 1913 to revisit the Redistribution Hypothesis - the prediction that franchise extension causes an increase in state-sponsored redistribution. We adopt a novel method of uncovering causality from non-experimental data proposed by Hoover (2001). This method is based on tests for structural breaks in the marginal and conditional distributions of the franchise and fiscal structure time series preceded by a detailed historical narrative analysis. We do not find any compelling evidence that supports the Redistribution Hypothesis.

Keywords: franchise extension, redistribution, democratization, causality, structural breaks, local government, central government, historical narrative

JEL Classification: D720

Suggested Citation

Aidt, Toke and Winer, Stanley L. and Zhang, Peng, Franchise Extension and Fiscal Structure in the United Kingdom 1820-1913: A New Test of the Redistribution Hypothesis (2020). CESifo Working Paper No. 8114, Available at SSRN: https://ssrn.com/abstract=3544500

Toke Aidt (Contact Author)

University of Cambridge - Faculty of Economics ( email )

Sidgwick Avenue
Cambridge, CB3 9DD
United Kingdom

Stanley L. Winer

Carleton University - School of Public Policy and Administration ( email )

1125 Colonel By Drive
Ottawa, Ontario K1S 5B6
Canada
613-520-2600 x2630 (Phone)
613-520-2551 (Fax)

HOME PAGE: http://www.carleton.ca/winer

Carleton University - Department of Economics ( email )

1125 Colonel By Drive
Ottawa, Ontario K1S 5B6
Canada
613-520-2600 ex.2630 (Phone)
613-520-2551 (Fax)

HOME PAGE: http://www.carleton.ca/winer

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Peng Zhang

Simon Fraser University (SFU) ( email )

8888 University Drive
Burnaby, British Columbia V5A 1S6
Canada

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