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Majority Voting in Multidimensional Policy Spaces: Kramer-Shepsle versus Stackelberg

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  • De Donder, Philippe
  • Le Breton, Michel
  • Peluso, Eugenio

Abstract

We study majority voting over a bidimensional policy space when the voters' type space is either uni- or bidimensional. We show that a Condorcet winner fails to generically exist even with a unidimensional type space. We then study two voting procedures widely used in the literature. The Stackelberg (ST) procedure assumes that votes are taken one dimension at a time according to an exogenously specified sequence. The Kramer-Shepsle (KS) procedure also assumes that votes are taken separately on each dimension, but not in a sequential way. A vector of policies is a Kramer-Shepsle equilibrium if each component coincides with the majority choice on this dimension given the other components of the vector. We study the existence and uniqueness of the ST and KS equilibria, and we compare them, looking e.g. at the impact of the ordering of votes for ST and identifying circumstances under which ST and KS equilibria coincide. In the process, we state explicitly the assumptions on the utility function that are needed for these equilibria to be well behaved. We especially stress the importance of single crossing conditions, and we identify two variants of these assumptions: a marginal version that is imposed on all policy dimensions separately, and a joint version whose definition involves both policy dimensions.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 7646.

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Date of creation: Jan 2010
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Handle: RePEc:cpr:ceprdp:7646

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Keywords: one-sided separability; single crossing condition; Unidimensional and bidimensional type space;

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References

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  1. Hoxby, Caroline & Baqir, Reza & Alesina, Alberto, 2004. "Political Jurisdictions in Heterogeneous Communities," Scholarly Articles 4552532, Harvard University Department of Economics.
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  14. Philippe De Donder & Jean Hindriks, 1998. "The political economy of targeting," Public Choice, Springer, vol. 95(1), pages 177-200, April.
  15. repec:hrv:faseco:4553034 is not listed on IDEAS
  16. Nechyba, Thomas J, 1997. "Local Property and State Income Taxes: The Role of Interjurisdictional Competition and Collusion," Journal of Political Economy, University of Chicago Press, vol. 105(2), pages 351-84, April.
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Citations

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Cited by:
  1. Sascha Kurz & Nicola Maaser & Stefan Napel & Matthias Weber, 2014. "Mostly Sunny: A Forecast of Tomorrow's Power Index Research," Tinbergen Institute Discussion Papers 14-058/I, Tinbergen Institute.
  2. Alberto F. Alesina & Francesco Passarelli, 2010. "Regulation Versus Taxation," NBER Working Papers 16413, National Bureau of Economic Research, Inc.
  3. Russo, Antonio, 2012. "Voting on Road Congestion Policy," TSE Working Papers 12-310, Toulouse School of Economics (TSE), revised Nov 2012.
  4. Philippe De Donder & Michel Le Breton & Eugenio Peluso, 2012. "On the (sequential) majority choice of public good size and location," Social Choice and Welfare, Springer, vol. 39(2), pages 457-489, July.
  5. Kirill Borissov & Joseph Hanna & Stephane Lambrecht, 2014. "Public Goods, Voting, and Growth," EUSP Deparment of Economics Working Paper Series Ec-01/14, European University at St. Petersburg, Department of Economics.
  6. Masciandaro, Donato & Passarelli, Francesco, 2013. "Financial systemic risk: Taxation or regulation?," Journal of Banking & Finance, Elsevier, vol. 37(2), pages 587-596.

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