In this article, I empirically test George Stigler’s (1970) theoretical argument, which is based on Aaron Director’s observation that income redistribution runs from the poor and the rich to the middle classes. Using a panel dataset for ten Canadian provinces from 1981 to 2008, I analyze the impact of various measures of inequality on provincial government size. The estimation results do not support the predictions of theories explaining the growth of government size on the basis of the median voter theorem.
Sagynbekov, Ken Imanak
"Income Inequality and Public Expenditures in Canadian Provinces: Is Director’s Law Still Relevant?,"
Journal of the Indiana Academy of the Social Sciences: Vol. 16
, Article 10.
Available at: http://digitalcommons.butler.edu/jiass/vol16/iss2/10