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Information, Polarization and Delegation in Democracy

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Author Info
Christian Schultz (Institute of Economics, University of Copenhagen)

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Abstract

This paper investigates the merits of different democratic institutions when politics is uni-dimensional, there is uncertainty both about the preferences of the future electorate and the future polarization of political parties, and politicians have better information about the state of the world than voters. Three types of institutions are compared: direct democracy, representative democracy where politicians are accountable, and independent agencies where they are not. Low uncertainty about the state of the world and the future electorate’s preferences and high expected polarization make direct democracy optimal, while the opposite configuration makes representative democracy optimal. Independent agencies are optimal for intermediate values.

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Publisher Info
Paper provided by Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics in its series EPRU Working Paper Series with number 03-16.

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Length: 28 pages
Date of creation: Nov 2003
Date of revision:
Handle: RePEc:kud:epruwp:03-16

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Related research
Keywords: accountability; redistribution; constitutional design; voting; information; direct democracy;

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Find related papers by JEL classification:
H1 - Public Economics - - Structure and Scope of Government
H7 - Public Economics - - State and Local Government; Intergovernmental Relations
K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Anke Kessler, 2000. "Representative versus Direct Democracy: The Role of Informational Asymmetries," Bonn Econ Discussion Papers bgse18_2000, University of Bonn, Germany. [Downloadable!]
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  2. Persson, Torsten & Tabellini, Guido, 1997. "Political Economics and Macroeconomic Policy," CEPR Discussion Papers 1759, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  3. Schultz, Christian, 1996. "Polarization and Inefficient Policies," Review of Economic Studies, Blackwell Publishing, vol. 63(2), pages 331-44, April. [Downloadable!] (restricted)
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  4. Harrington, Joseph E, Jr, 1993. "Economic Policy, Economic Performance, and Elections," American Economic Review, American Economic Association, vol. 83(1), pages 27-42, March.
  5. Stephen Coate & Timothy Besley, 2000. "Elected versus Appointed Regulators: Theory and Evidence," NBER Working Papers 7579, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. Matsusaka, John G, 1992. "Economics of Direct Legislation," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 541-71, May. [Downloadable!] (restricted)
  7. Mailath, George J, 1987. "Incentive Compatibility in Signaling Games with a Continuum of Types," Econometrica, Econometric Society, vol. 55(6), pages 1349-65, November. [Downloadable!] (restricted)
  8. Eric Maskin & Jean Tirole, 2004. "The Politician and the Judge: Accountability in Government," Economics Working Papers 0020, Institute for Advanced Study, School of Social Science. [Downloadable!]
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  9. Besley, Timothy & Coate, Stephen, 1997. "An Economic Model of Representative Democracy," The Quarterly Journal of Economics, MIT Press, vol. 112(1), pages 85-114, February.
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  10. Wilko Letterie & Otto H. Swank, 1998. "Economic Policy, Model Uncertainty and Elections," Economics and Politics, Blackwell Publishing, vol. 10(1), pages 85-103, 03. [Downloadable!] (restricted)
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Alberto Alesina & Guido Tabellini, 2007. "Bureaucrats or Politicians? Part I: A Single Policy Task," Levine's Working Paper Archive 321307000000000870, David K. Levine. [Downloadable!]
    Other versions:
  2. Alberto Alesina & Guido Tabellini, 2007. "Bureaucrats or Politicians? Part II: Multiple Policy Tasks," Levine's Working Paper Archive 321307000000000875, David K. Levine. [Downloadable!]
    Other versions:
  3. Alberto Alesina & Guido Tabellini, 2005. "Why do Politicians Delegate?," Levine's Bibliography 784828000000000470, UCLA Department of Economics. [Downloadable!]
    Other versions:
  4. Alesina, Alberto F & Tabellini, Guido, 2004. "Bureaucrats or Politicians?," CEPR Discussion Papers 4252, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  5. James E. Alt & David Dreyer Lassen, 2005. "Political and Judicial Checks on Corruption: Evidence from American State Governments," EPRU Working Paper Series 05-12, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics. [Downloadable!]
    Other versions:
  6. Jordi Blanes i Vidal & Clare Leaver, 2008. "Pandering Judges," Economics Series Working Papers 390, University of Oxford, Department of Economics. [Downloadable!]
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