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Political Competition, Ideology and Corruption

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  • Aristotelis Boukouras

    (Georg-August-University Göttingen)

  • Kostas Koufopoulos

    (University of Warwick)

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    Abstract

    This paper presents a model of political competition, where voter decisions are affected by their ideological adherence to political parties. We derive a number of interesting results: First, we show that an equilibrium exists even though voting is fully deterministic. Second, although politicians, because of deterministic voting, can win an election with certainty by making concessions to voters, they choose to win the election only with some probability in order to maximize their expected rents. Third, if the distribution of ideology is asymmetric, then political parties follow different platforms in equilibrium. Finally, our model generates two novel empirical predicitions, which, to the best of our knowledge, have not been tested yet: i) the higher the ideological adherence to a political party the more inefficient policies this party will follow, ii) the higher the number of extra votes required for election victory (the super-majority requirement) the higher the degree of corruption.

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    File URL: http://www2.vwl.wiso.uni-goettingen.de/courant-papers/CRC-PEG_DP_58.pdf
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    Bibliographic Info

    Paper provided by Courant Research Centre PEG in its series Courant Research Centre: Poverty, Equity and Growth - Discussion Papers with number 58.

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    Date of creation: 20 Jan 2011
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    Handle: RePEc:got:gotcrc:058

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    Web page: http://www.uni-goettingen.de/en/82144.html

    Related research

    Keywords: corruption; political instability; voting behavior;

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    1. Acemoglu, Daron, 2003. "Why not a political Coase theorem? Social conflict, commitment, and politics," Journal of Comparative Economics, Elsevier, vol. 31(4), pages 620-652, December.
    2. Acemoglu, D. & Verdier, T., 1997. "The Choice between Market Failures and Corruption," DELTA Working Papers 97-06, DELTA (Ecole normale supérieure).
    3. Easterly, W & Levine, R, 1996. "Africa's Growth Tragedy : Policies and Ethnic Divisions," Papers 536, Harvard - Institute for International Development.
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