IDEAS home Printed from https://ideas.repec.org/p/ecm/latm04/178.html
   My bibliography  Save this paper

Partisan Goals and Electoral Interests: Brazilian Economic Reforms under Lula

Author

Listed:
  • Maria Carolina da Silva Leme
  • Tomás Málaga

Abstract

Almost everyone was surprised by the reforms proposed by the Lula administration in Brazil. Once in power, they proposed reforms they voted against when in opposition. We analyze a game in which political parties, with partisan and electoral interest, try to approve reforms that benefit the majority of population but face an opposition with substantial power to determine their fate. The Opposition’s behavior may lead to different equilibrium: approval of the reform after an electoral cycle, with the party initially against the reform making it their own; not approval, with the parties taking turn in power; not approval, with the party that originally proposed the reform remaining in power, but with the deterioration of the economic situation

Suggested Citation

  • Maria Carolina da Silva Leme & Tomás Málaga, 2004. "Partisan Goals and Electoral Interests: Brazilian Economic Reforms under Lula," Econometric Society 2004 Latin American Meetings 178, Econometric Society.
    • Handle: RePEc:ecm:latm04:178
    as

    Download full text from publisher

    File URL: http://repec.org/esLATM04/up.12335.1081983189.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Alesina, Alberto & Drazen, Allan, 1991. "Why Are Stabilizations Delayed?," American Economic Review, American Economic Association, vol. 81(5), pages 1170-1188, December.
    2. Fernandez, Raquel & Rodrik, Dani, 1991. "Resistance to Reform: Status Quo Bias in the Presence of Individual-Specific Uncertainty," American Economic Review, American Economic Association, vol. 81(5), pages 1146-1155, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Francesco Caselli & Nicola Gennaioli, 2008. "Economics and Politics of Alternative Institutional Reforms," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 123(3), pages 1197-1250.
    2. Randall S. Kroszner, 1999. "Is the Financial System Politically Independent? Perspectives on the Political Economy of Banking and Financial Regulation," CRSP working papers 492, Center for Research in Security Prices, Graduate School of Business, University of Chicago.
    3. Urs Fischbacher & Simeon Schudy, 2014. "Reciprocity and resistance to comprehensive reform," Public Choice, Springer, vol. 160(3), pages 411-428, September.
    4. Deroose, Servaas & Turrini, Alessandro, 2005. "The Short-Term Budgetary Implications of Structural Reforms. Evidence from a Panel of EU Countries," CEPR Discussion Papers 5217, C.E.P.R. Discussion Papers.
    5. Prato, Carlo & Wolton, Stephane, 2018. "Rational ignorance, populism, and reform," European Journal of Political Economy, Elsevier, vol. 55(C), pages 119-135.
    6. Elsa Fornero, 2015. "Economic-financial Literacy and (Sustainable) Pension Reforms: Why the Former is a Key Ingredient for the Latter," Bankers, Markets & Investors, ESKA Publishing, issue 134, pages 6-16, January-F.
    7. Stephen Morris & Stephen Coate, 1999. "Policy Persistence," American Economic Review, American Economic Association, vol. 89(5), pages 1327-1336, December.
    8. Markus Leibrecht & Hans Pitlik, 2014. "Generalised Trust, Institutional and Political Constraints on the Executive and Deregulation of Markets," WIFO Working Papers 481, WIFO.
    9. Lastauskas, Povilas & Stakėnas, Julius, 2020. "Labor market reforms and the monetary policy environment," European Economic Review, Elsevier, vol. 128(C).
    10. Bluhm, Richard & Thomsson, Kaj, 2020. "Holding on? Ethnic divisions, political institutions and the duration of economic declines," Journal of Development Economics, Elsevier, vol. 144(C).
    11. Anand, Kartik & Gai, Prasanna & König, Philipp Johann, 2020. "Leaping into the dark: A theory of policy gambles," Discussion Papers 07/2020, Deutsche Bundesbank.
    12. Jiahua Che & Giovanni Facchini, 2004. "Dual Track Liberalization: With and Without Losers," William Davidson Institute Working Papers Series 2004-669, William Davidson Institute at the University of Michigan.
    13. Di Tella, Rafael & MacCulloch, Robert, 2006. "Europe vs America: Institutional hysteresis in a simple normative model," Journal of Public Economics, Elsevier, vol. 90(12), pages 2161-2186, December.
    14. Andréasson, Hannes & Elert, Niklas & Karlson, Nils, 2013. "Does Social Cohesion Really Promote Reforms?," Ratio Working Papers 211, The Ratio Institute.
    15. Micael Castanheira & Gaëtan Nicodème & Paola Profeta, 2012. "On the political economics of tax reforms: survey and empirical assessment," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 19(4), pages 598-624, August.
    16. Jain, Sanjay & Majumdar, Sumon & Mukand, Sharun W, 2014. "Walk the line: Conflict, state capacity and the political dynamics of reform," Journal of Development Economics, Elsevier, vol. 111(C), pages 150-166.
    17. Kroszner, Randall S., 1999. "Is the Financial System Politically Independent? Perspectives on the Political Economy of Banking and Financial Regulation," Working Papers 151, The University of Chicago Booth School of Business, George J. Stigler Center for the Study of the Economy and the State.
    18. Cason, Timothy N. & Mui, Vai-Lam, 2002. "Fairness and sharing in innovation games: a laboratory investigation," Journal of Economic Behavior & Organization, Elsevier, vol. 48(3), pages 243-264, July.
    19. Wolfgang Ochel & Oliver Roehn & Anja Rohwer & Thomas Stratmann & Anja Hülsewig, 2008. "Reduction of Employment Protection in OECD Countries: Its Driving Forces," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 6(04), pages 29-35, December.
    20. Mondino, Guillermo & Sturzenegger, Federico & Tommasi, Mariano, 1996. "Recurrent High Inflation and Stabilization: A Dynamic Game," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 37(4), pages 981-996, November.

    More about this item

    Keywords

    Economic Reforms; Electoral Interest; Partisan Interest;
    All these keywords.

    JEL classification:

    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecm:latm04:178. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Christopher F. Baum (email available below). General contact details of provider: https://edirc.repec.org/data/essssea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.