The Student Economist , November 2013 | Page 22

The Median Voter Theorem BACKGROUND INFORMATION The median voter theorem is a mathematical result which states that majority rule will produce the outcome most preferred by the median voter. The median voter is the voter exactly in the middle of the distribution. In 1948 Duncan Black developed the original median voter model. It did, however, take until 1957 to become a well known and popular way of demonstrating economic voting strategies. Today, it is one of the most widely used models of voting behavior in the economic world. EXAMPLE OF THE MEDIAN VOTER MODEL IN IRELAND TODAY This particular example was formulated using statistics regarding the field of social welfare in Ireland (as given in the 2014 budget) as an example of the median voter model. We will look at the effect of this voting practice in relation to child benefit. The below bar chart shows how the preferred amount of child benefit (as decided by 125 voters) is distributed over seven options. These options range from €0 to €260. It is clear that the results display a median voter of €130 which was, as a result, selected as a fair monthly rate of child benefit by the Irish Government.