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The Politics of Persuasion when Voters are Rational

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

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Abstract

A democratic society is considered where the voters, but not the politicians, are uncertain about how the economy works. The parties therefore have a strategic motive to misinform the voters. Will the voters learn how the economy works and will the policy decisions be efficient? It turns out that the degree of polarization of the political parties is crucial. If the parties are very polarized, voters will not trust the parties and the policy will not reflect how the economy actually works.

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Publisher Info
Paper provided by University of Copenhagen. Department of Economics in its series Discussion Papers with number 93-15.

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Length: 19 pages
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Publication status: Published in: Journal of Economics, 1995, 97(3) pp 357-368
Handle: RePEc:kud:kuiedp:9315

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Related research
Keywords: economic models of political processes; social choice studies; voting;

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Find related papers by JEL classification:
D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior

Cited by:
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  1. Zhihao Yu, 2003. "Environmental Protection: A Theory of Direct and Indirect Competition for Political Influence," Carleton Economic Papers 03-07, Carleton University, Department of Economics. [Downloadable!]
    Other versions:
  2. Paul Heidhues & Johan Lagerlöf, 2000. "Hiding Information in Electoral Competition," CIG Working Papers FS IV 00-06, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG), revised Feb 2002. [Downloadable!]
    Other versions:
  3. Allcott, Hunt & Lederman, Daniel & Lopez, Ramon, 2006. "Political institutions, inequality, and agricultural growth : the public expenditure connection," Policy Research Working Paper Series 3902, The World Bank. [Downloadable!]
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