Franchise extension and fiscal structure in the UK 1820–1913: a new test of the Redistribution Hypothesis

Abstract

The Redistribution Hypothesis predicts that franchise extension causes an increase in state-sponsored redistribution. We test this hypothesis by considering the relationship between franchise extension and selected aspects of fiscal structure at both central and local government levels in the UK from 1820 to 1913. We do so without imposing a priori restrictions on the direction of causality using a novel method for causal investigation of non-experimental data proposed by Hoover (2001). This method is based on tests for structural breaks in the conditional and marginal distributions of the franchise and fiscal structure time series preceded by a detailed historical narrative analysis. We do not find compelling evidence supporting the Redistribution Hypothesis.