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A Drawback Of Electoral Competition

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Author Info
Alessandro Lizzeri (New York University and CEPR,)
Nicola Persico (University of Pennsylvania,)

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Abstract

In most major democracies there are very fewparties compared to the number of possible policy positions held by voters. We provide an efficiency rationale for why it might be appropriate to limit the proliferation of parties. In our model, the larger the number of parties, the greater the inefficiency of the outcome of electoral competition. The reason is that, when the number of parties increases, electoral incentives push each party to focus its electoral promises on a narrower constituency, and then special interest policies replace more efficient policies that have diffuse benefits. The analysis provides a possible explanation for the existence of institutional features that limit the extent of electoral competition: thresholds of exclusion, runoff electoral systems, and majoritarian two-party political systems. (JEL: D82, L15) Copyright (c) 2005 by the European Economic Association.

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Publisher Info
Article provided by MIT Press in its journal Journal of the European Economic Association.

Volume (Year): 3 (2005)
Issue (Month): 6 (December)
Pages: 1318-1348
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Handle: RePEc:tpr:jeurec:v:3:y:2005:i:6:p:1318-1348

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  1. Ashish Chaturvedi & Amihai Glazer, 2007. "Competitive Proposals to Special Interests," Working Papers 060716, University of California-Irvine, Department of Economics. [Downloadable!]
  2. Torsten Persson & Gerard Roland & Guido Tabellini, 2006. "Electoral Rules and Government Spending in Parliamentary Democracies," Levine's Working Paper Archive 321307000000000706, David K. Levine. [Downloadable!]
    Other versions:
  3. Crutzen, Benoît SY & Sahuguet, Nicolas, 2006. "Redistributive Politics with Distortionary Taxation," CEPR Discussion Papers 5975, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  4. Marcus Drometer & Johannes Rincke, 2008. "The Design of Political Institutions: Electoral Competition and the Choice of Ballot Access Restrictions in the United States," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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