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Proximity and linkages among coalition participants: a new voting power measure applied to the International Monetary Fund

Author

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  • Thimann, Christian
  • Reynaud, Julien
  • Gatarek, Lukasz

Abstract

Voting power methodology offers insights to understand coalition building in collective decision making. Using cooperative game theory, Banzhaf (1965) developed an index to capture the numerical importance of voters in coalition building. This voting power index is still widely used today in applications to international politics. Yet, it assumes that voters are symmetric and focuses on particular voters only. This paper proposes a new measure of voting power which account for the numerical proximity between voters by capturing how often they appear in winning coalitions together. The index is also developed to account for the relative importance of coalitions and the relative linkages among coalition participants. We present an application to the governance structure of the International Monetary Fund, with linkages being represented by bilateral trade between voters. The results are able to explain several important features of the functioning of this particular voting body, and may be useful for other applications of international politics. JEL Classification: C71, F33

Suggested Citation

  • Thimann, Christian & Reynaud, Julien & Gatarek, Lukasz, 2007. "Proximity and linkages among coalition participants: a new voting power measure applied to the International Monetary Fund," Working Paper Series 819, European Central Bank.
    • Handle: RePEc:ecb:ecbwps:2007819
    Note: 76331
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    References listed on IDEAS

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    Cited by:

    1. Fratzscher, Marcel & Reynaud, Julien, 2011. "IMF surveillance and financial markets--A political economy analysis," European Journal of Political Economy, Elsevier, vol. 27(3), pages 405-422, September.
    2. Reynaud, Julien & Vauday, Julien, 2009. "Geopolitics and international organizations: An empirical study on IMF facilities," Journal of Development Economics, Elsevier, vol. 89(1), pages 139-162, May.
    3. Julien Reynaud & Fabien Lange & Łukasz Gątarek & Christian Thimann, 2011. "Proximity in Coalition Building," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 3(3), pages 111-132, September.

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    More about this item

    Keywords

    coalition building; International Monetary Fund; voting power;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions

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