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Ministerial Weights and Government Formation: Estimation Using a Bargaining Model

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  • Yasutora Watanabe

Abstract

This article proposes a method to estimate relative ministerial weights in parliamentary democracies. Specifically, we present a bargaining model of government formation and estimate structural parameters of the model using data for (i) who the formateurs are, (ii) what each party's voting weight is, and (iii) what ministerial seats each party obtains. We also measure the effects of voting weights and formateur advantage on bargaining results. We apply our proposed method to the case of Japan. Our estimation results show that political players value pork-related posts (such as the Minister of Construction) much more than prestigious ones (such as the Minister of Foreign Affairs). We also find that there is a significant formateur advantage, whereas voting weights do not have a significant scale effect, which is consistent with the findings for European democracies. The Author 2007. Published by Oxford University Press on behalf of Yale University. All rights reserved. For permissions, please email: journals.permissions@oxfordjournals.org, Oxford University Press.

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File URL: http://hdl.handle.net/10.1093/jleo/ewm040
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Bibliographic Info

Article provided by Oxford University Press in its journal The Journal of Law, Economics, & Organization.

Volume (Year): 24 (2008)
Issue (Month): 1 (May)
Pages: 95-119

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Handle: RePEc:oup:jleorg:v:24:y:2008:i:1:p:95-119

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  1. Merlo, Antonio, 1996. "Bargaining over governments in a stochastic environment," Bulletins 7476, University of Minnesota, Economic Development Center.
  2. McDonald, James B, 1984. "Some Generalized Functions for the Size Distribution of Income," Econometrica, Econometric Society, vol. 52(3), pages 647-63, May.
  3. Horowitz, Joel L., 2001. "The Bootstrap," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 52, pages 3159-3228 Elsevier.
  4. Barry Nalebuff & Roni Shachar, 1997. "Follow The Leader: Theory And Evidence On Political Participation," Yale School of Management Working Papers ysm57, Yale School of Management.
  5. Daniel Diermeier & Hulya Eraslan & Antonio Merlo, 2003. "A Structural Model of Government Formation," Econometrica, Econometric Society, vol. 71(1), pages 27-70, January.
  6. Keane, Michael & Wolpin, Kenneth, 1997. "Introduction to the JBES Special Issue on Structural Estimation in Applied Microeconomics," MPRA Paper 55136, University Library of Munich, Germany.
  7. Sutton, John, 1986. "Non-cooperative Bargaining Theory: An Introduction," Review of Economic Studies, Wiley Blackwell, vol. 53(5), pages 709-24, October.
  8. Stephen Coate & Michael Conlin, 2002. "Voter Turnout: Theory and Evidence from Texas Liquor Referenda," NBER Working Papers 8720, National Bureau of Economic Research, Inc.
  9. Eraslan, Hulya, 2002. "Uniqueness of Stationary Equilibrium Payoffs in the Baron-Ferejohn Model," Journal of Economic Theory, Elsevier, vol. 103(1), pages 11-30, March.
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Citations

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Cited by:
  1. Tomohiko Kawamori, 2013. "Rejecter-proposer legislative bargaining with heterogeneous time and risk preferences," Social Choice and Welfare, Springer, vol. 40(1), pages 27-40, January.
  2. Eraslan, Hülya & McLennan, Andrew, 2013. "Uniqueness of stationary equilibrium payoffs in coalitional bargaining," Journal of Economic Theory, Elsevier, vol. 148(6), pages 2195-2222.
  3. Matilde Bombardini & Francesco Trebbi, 2007. "Votes or Money? Theory and Evidence from the US Congress," NBER Working Papers 13672, National Bureau of Economic Research, Inc.
  4. Asongu Simplice & Oasis Kodila-Tedika, 2013. "State fragility, rent seeking and lobbying: evidence from African data," Working Papers 13/019, African Governance and Development Institute..
  5. Masanori Mitsutsune & Takanori Adachi, 2011. "Estimating Noncooperative and Cooperative Models of Bargaining: An Empirical Comparison," KIER Working Papers 799, Kyoto University, Institute of Economic Research.
  6. Patrick Francois & Ilia Rainer & Francesco Trebbi, 2012. "How Is Power Shared In Africa?," NBER Working Papers 18425, National Bureau of Economic Research, Inc.

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