“MARCO FANNO ” WORKING PAPER N.155Do politiciansservetheonepercent?

• Main Authors: Università Degli Studi Di Padova, Pablo E. Torija Jimenez, Evidenceinoecd Countries, Pabloe. Torijajiménez
• Other Authors: The Pennsylvania State University CiteSeerX Archives
• Format: Text
• Language: English
• Published: 2012
• Subjects: Iceland
• Online Access: http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.252.3854; http://www.decon.unipd.it/assets/pdf/wp/20120155.pdf

Presentsocialmovements,as“Occupy WalStreet ” ortheSpanish “Indignados”, claim thatpoliticianswork foran economic elite,the 1%,thatdrivesthe world economic policies.In this paper I show through econometric analysis that these movements are accurate:politiciansin OECD countriesmaximizethehappinesoftheeconomicelite.In 2009 center-right parties maximized the utility ofthe 100th-98th richest percentile and center-leftpartiesthe 100th-95th richestpercentile.The situation hasworsened from the seventieswhen politiciansrepresented,approxim ately,them edian voter. Keywords:Democracy,representation,economicelite,politicaleconomy,OccupyWal-Street. 1 IN TRO D U CTIO N: Thefinancialcrisisthathad brokeoutintheUSA in2007turnedintoaworldwide economicdisasteralready by 2008.Thatyear,thousandsofcitizensfrom Greece,Portugal and Iceland expresed their anger against politicians and their economic management. Threeyearslater,and with theArab spring in between,around 7 milionsofSpanish “indignados ” started a ma sivedemonstration campaign.By September2011,theoutrage