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Term Limits and Electoral Accountability

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Author Info
Smart, Michael
Sturm, Daniel M

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Abstract

This Paper analyses the impact of term limits in a political agency model. We find that term limits reduce the value of holding office. This reduction in the re-election incentive can induce politicians to implement policies that are closer to their own private preferences. Such ‘truthful’ behaviour by incumbents will in turn result in better screening of incumbents whose preferences do not correspond to voters’ preferences. We show that these effects can make a two-term limit, which is the empirically most frequent restriction on tenure, ex ante welfare-improving from the perspective of voters. We present evidence from gubernatorial elections that the model’s main empirical implication is supported by the data.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 4272.

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Date of creation: Feb 2004
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Handle: RePEc:cpr:ceprdp:4272

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Related research
Keywords: accountability; political agency; term limits;

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Find related papers by JEL classification:
D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior
H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government

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References listed on IDEAS
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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  3. Konrad, Kai A. & Torsvik, Gaute, 1997. "Dynamic incentives and term limits in bureaucracy regulation," European Journal of Political Economy, Elsevier, vol. 13(2), pages 261-279, May. [Downloadable!] (restricted)
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  6. Timothy Besley & Robin Burgess, 2002. "The Political Economy Of Government Responsiveness: Theory And Evidence From India," The Quarterly Journal of Economics, MIT Press, vol. 117(4), pages 1415-1451, November. [Downloadable!] (restricted)
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  7. Reed, W Robert & Schansberg, D Eric, 1994. "An Analysis of the Impact of Congressional Term Limits," Economic Inquiry, Oxford University Press, vol. 32(1), pages 79-91, January.
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  10. Besley, Timothy & Smart, Michael, 2007. "Fiscal restraints and voter welfare," Journal of Public Economics, Elsevier, vol. 91(3-4), pages 755-773, April. [Downloadable!] (restricted)
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  13. Edward Glaeser, 1997. "Self-imposed term limits," Public Choice, Springer, vol. 93(3), pages 389-394, December. [Downloadable!] (restricted)
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  18. Buchanan, James M & Congleton, Roger D, 1994. " The Incumbency Dilemma and Rent Extraction by Legislators," Public Choice, Springer, vol. 79(1-2), pages 47-60, April.
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  20. Coate, Stephen & Morris, Stephen, 1995. "On the Form of Transfers in Special Interests," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1210-35, December. [Downloadable!] (restricted)
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  22. Lopez, Edward J, 2003. " Term Limits: Causes and Consequences," Public Choice, Springer, vol. 114(1-2), pages 1-56, January. [Downloadable!] (restricted)
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  25. Joseph M. Johnson & W. Mark Crain, 2004. "Effects of Term Limits on Fiscal Performance: Evidence from Democratic Nations," Public Choice, Springer, vol. 119(1_2), pages 73-90, 04. [Downloadable!]
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Full references

Cited by:
(explanations, 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.)

  1. Richard E. Baldwin & Frédéric Robert-Nicoud, 2007. "Protection for Sale Made Easy," CEP Discussion Papers dp0800, Centre for Economic Performance, LSE. [Downloadable!]
    Other versions:
  2. Markus Müller, 2007. "Motivation of politicians and long-term policies," Public Choice, Springer, vol. 132(3), pages 273-289, September. [Downloadable!] (restricted)
  3. Claudio Ferraz & Frederico Finan, 2007. "Electoral Accountability and Corruption in Local Governments: Evidence from Audit Reports," IZA Discussion Papers 2843, Institute for the Study of Labor (IZA). [Downloadable!]
  4. Ferraz, Claudio & Finan, Frederico, 2008. "Motivating Politicians: The Impacts of Monetary Incentives on Quality and Performance," IZA Discussion Papers 3411, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  5. Claudio Ferraz & Frederico Finan, 2009. "Electoral Accountability and Corruption: Evidence from the Audits of Local Governments," NBER Working Papers 14937, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Gautam Gowrisankaran & Matthew F. Mitchell & Andrea Moro, 2008. "Electoral Design and Voter Welfare from the U.S. Senate: Evidence from a Dynamic Selection Model," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 11(1), pages 1-17, January. [Downloadable!] (restricted)
  7. Phongthorn Wrasai, 2005. "Politicians' Motivation, Role of Elections, and Policy Choices," Tinbergen Institute Discussion Papers 05-050/1, Tinbergen Institute. [Downloadable!]
  8. Justin Fox, 2007. "Government transparency and policymaking," Public Choice, Springer, vol. 131(1), pages 23-44, April. [Downloadable!] (restricted)
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