Economic Policy, Model Uncertainty and Elections
AbstractWe analyse a game theoretical model in which policy makers have superior knowledge about the working of the economy relative to voters. We show that parties increase their chances of reelection by basing their policies on the model that best fits in with their preferences. Moreover, we show that if parties care much about holding office, they may deliberately base their policies on a model that is electorally attractive, even if this model does not describe the working of the economy correctly. Our paper provides an explanation for the observation that different political parties subscribe to different economic philosophies. Copyright Blackwell Publishers Ltd 1998.
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Economic and Politics.
Volume (Year): 10 (1998)
Issue (Month): 1 (03)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0954-1985
Other versions of this item:
- Letterie, Wilko & Swank, Otto H., 1998. "Economic policy, model uncertainty and elections," Open Access publications from Maastricht University urn:nbn:nl:ui:27-20498, Maastricht University.
- Letterie, W.A. & Swank, O.H., 1993. "Economic Policy, Model Uncertainty and Elections," Papers 9307-p, Erasmus University of Rotterdam - Institute for Economic Research.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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