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Ministerial Weights and Government Formation: Estimation Using a Bargaining Model

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  • Yasutora Watanabe
  • Takanori Adachi

Abstract

This paper proposes a method to estimate relative ministerial weights in parliamentary democracies. Specifically, our method combines a bargaining model of government formation with maximum likelihood estimation. The data required for estimation are who formateurs are, what each party’s voting weight is, and what ministerial seats each party obtains. We use variation of the data and the structure of the bargaining model to recover ministerial weights and other parameters. Additionally, the method can measure the effects of voting weights and formateur advantage. We apply our proposed method to the case of Japan. Our results statistically show that political players value pork-related posts (such as the Minister of Construction) more than prestigious ones (such as the Minister of Foreign Affairs). We also find that there is a significant formateur advantage, while voting weights do not have a significant scale effect

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Bibliographic Info

Paper provided by Econometric Society in its series Econometric Society 2004 Far Eastern Meetings with number 742.

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Date of creation: 11 Aug 2004
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Handle: RePEc:ecm:feam04:742

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Keywords: Government Formation; Bargaining;

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  1. Merlo, Antonio, 1996. "Bargaining over governments in a stochastic environment," Bulletins 7476, University of Minnesota, Economic Development Center.
  2. 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.
  3. McDonald, James B, 1984. "Some Generalized Functions for the Size Distribution of Income," Econometrica, Econometric Society, vol. 52(3), pages 647-63, May.
  4. Barry Nalebuff & Ron Shachar, 1999. "Follow the Leader: Theory and Evidence on Political Participation," American Economic Review, American Economic Association, vol. 89(3), pages 525-547, June.
  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. Sutton, John, 1986. "Non-cooperative Bargaining Theory: An Introduction," Review of Economic Studies, Wiley Blackwell, vol. 53(5), pages 709-24, October.
  7. 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.
  8. 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.
  9. Stephen Coate & Michael Conlin, 2002. "Voter Turnout: Theory and Evidence from Texas Liquor Referenda," NBER Working Papers 8720, National Bureau of Economic Research, Inc.
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Cited by:
  1. 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..
  2. 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.
  3. Eraslan, Hülya & McLennan, Andrew, 2013. "Uniqueness of stationary equilibrium payoffs in coalitional bargaining," Journal of Economic Theory, Elsevier, vol. 148(6), pages 2195-2222.
  4. Bombardini, Matilde & Trebbi, Francesco, 2011. "Votes or money? Theory and evidence from the US Congress," Journal of Public Economics, Elsevier, vol. 95(7), pages 587-611.
  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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