Suppose voter preferences over a public good funded through a head tax are single peaked.If everyone has the same tastes and the public good is a normal good, then ideal points for higher income individuals will lie to the right of ideal points of lower income individuals.

Question

Quizplus · Accepted Answer

Since voter preferences are single peaked and the public good is a normal good, higher income individuals will be willing to contribute more towards it and will move their ideal point to the right, whereas lower income individuals will be less willing to contribute and their ideal point will be to the left. This means that the ideal points for higher income individuals will lie to the right of the ideal points for lower income individuals.

Suppose Voter Preferences Over a Public Good Funded Through a Head