Xenophobia and Distribution in France: A Politico-Economic Analysis

We study the effect of anti-immigrant sentiments among voters on the equilibrium position of political parties on the economic issue. We model political competition as taking place among three parties (Left, Right, and Extreme Right) on a two-dimensional policy space (economic issue, immigration issue) using an extension of the Party Unanimity Nash Equilibrium concept. We "calibrate" the model to French survey data for the election years 1988 and 2002, and show that the immigration issue influences equilibrium on the economic issue in a significant way.