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Economic integration and political accountability

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  • Sand-Zantman, Wilfried

Abstract

This paper studies to what extent economic integration, or globalization, influences the accountability of politicians. Assuming that politicians are controlled by the voters through reelection rules, we analyze to what extent economic integration affects the form of those rules and the efforts made by politicians. We define economic integration by the existence of policies and shocks interdependences between countries. Then, from a political point of view, this integration is shown to be a two-sided phenomenon. Shock-interdependence allows yardstick comparison, increases political accountability and therefore efforts while policy-interdependence induces a lack of responsibility and harms the extent to which politicians can be controlled.

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Bibliographic Info

Article provided by Elsevier in its journal European Economic Review.

Volume (Year): 48 (2004)
Issue (Month): 5 (October)
Pages: 1001-1025

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Handle: RePEc:eee:eecrev:v:48:y:2004:i:5:p:1001-1025

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Web page: http://www.elsevier.com/locate/eer

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References

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  1. Robert C. Feenstra, 1998. "Integration of Trade and Disintegration of Production in the Global Economy," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 31-50, Fall.
  2. John Ferejohn, 1986. "Incumbent performance and electoral control," Public Choice, Springer, vol. 50(1), pages 5-25, January.
  3. Mookherjee, Dilip, 1984. "Optimal Incentive Schemes with Many Agents," Review of Economic Studies, Wiley Blackwell, vol. 51(3), pages 433-46, July.
  4. Giancarlo Corsetti & Paolo Pesenti, 2001. "Welfare And Macroeconomic Interdependence," The Quarterly Journal of Economics, MIT Press, vol. 116(2), pages 421-445, May.
  5. Dani Rodrik, 1998. "Symposium on Globalization in Perspective: An Introduction," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 3-8, Fall.
  6. Banks, Jeffrey S. & Sundaram, Rangarajan K., 1998. "Optimal Retention in Agency Problems," Journal of Economic Theory, Elsevier, vol. 82(2), pages 293-323, October.
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Cited by:
  1. Martin Bodenstein & Heinrich Ursprung, 2001. "Political Yardstick Competition, Economic Integration, and Constitutional Choice in a Federation," CESifo Working Paper Series 501, CESifo Group Munich.
  2. Guillaume CHEIKBOSSIAN & Wilfried SAND-ZANTMAN, 2011. "Dynamic Cooperation in Local Public Goods Supply with Imperfect Monitoring," Annales d'Economie et de Statistique, ENSAE, issue 101-102, pages 327-346.
  3. Galina Zudenkova, 2010. "Split-ticket voting: an implicit incentive approach," Economics Working Papers we1011, Universidad Carlos III, Departamento de Economía.
  4. Zudenkova, Galina, 2010. "A Political Agency Model of Coattail Voting," Working Papers 2072/151618, Universitat Rovira i Virgili, Department of Economics.
  5. Albert Breton & Heinrich Ursprung, 2002. "Globalisation, Competitive Governments, and Constitutional Choice in Europe," CESifo Working Paper Series 657, CESifo Group Munich.

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