Pork for Policy: Executive and Legislative Exchange in Brazil
AbstractThe Brazilian Constitution of 1988 gave relatively strong powers to the president. We model and test executive-legislative relations in Brazil and demonstrate that presidents have used pork as a political currency to exchange for votes on policy reforms. In particular Presidents Cardoso and Lula have used pork to exchange for amendments to the Constitution. Without policy reforms Brazil would have had greater difficulty meeting its debt obligations. The logic for the exchange of pork for policy reform is that presidents typically have greater electoral incentives than members of Congress to care about economic growth, economic opportunity, income equality, and price stabilization. Members of Congress generally care more about redistributing gains to their constituents. Given the differences in preferences and the relative powers of each, the legislative and executive branches benefit by exploiting the gains from trade. Copyright 2006, Oxford University Press.
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Bibliographic InfoArticle provided by Oxford University Press in its journal The Journal of Law, Economics, and Organization.
Volume (Year): 22 (2006)
Issue (Month): 1 (April)
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Other versions of this item:
- Lee J. Alston & Bernardo Mueller, 2005. "Pork for Policy: Executive and Legislative Exchange in Brazil," NBER Working Papers 11273, National Bureau of Economic Research, Inc.
- D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
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