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Party Formation and Competition

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  • Daniel Ladley

    ()

  • James Rockey

    ()

Abstract

In the majority of democratic political systems, districts elect representatives, who form coalitions, which determine policies. In this paper we present a model which captures this process: A citizen-candidate model with multiple policy dimensions in which elected representatives endogenously choose to form parties. Numerical analysis shows that in equilibrium this model produces qualitatively realistic outcomes which replicate key features of cross-country empirical data, including variation consistent with Duverger's law. The numbers of policy dimensions and representatives elected per district are shown to determine the number, size, and relative locations of parties. Whilst multi-member district systems are found to reduce welfare.

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Bibliographic Info

Paper provided by Department of Economics, University of Leicester in its series Discussion Papers in Economics with number 10/17.

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Date of creation: May 2010
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Handle: RePEc:lec:leecon:10/17

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Related research

Keywords: Citizen-Candidate Model; Political Competition; Party Formation; Duverger’s Law; Computer Simulation;

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  1. Dutta, Bhaskar & Jackson, Matthew O & Le Breton, Michel, 2001. "Strategic Candidacy and Voting Procedures," Econometrica, Econometric Society, vol. 69(4), pages 1013-37, July.
  2. Gelman, Andrew & Katz, Jonathan N. & Tuerlinckx, Francis, 2002. "The Mathematics and Statistics of Voting Power," Working Papers 1141, California Institute of Technology, Division of the Humanities and Social Sciences.
  3. Massimo Morelli, 2004. "Party Formation and Policy Outcomes under Different Electoral Systems," Review of Economic Studies, Oxford University Press, vol. 71(3), pages 829-853.
  4. Massimo Morelli & Michele Tertilt, 2000. "Policy Stability under Different Electoral Systems," Working Papers 00-13, Ohio State University, Department of Economics.
  5. Wittman, Donald, 1977. "Candidates with policy preferences: A dynamic model," Journal of Economic Theory, Elsevier, vol. 14(1), pages 180-189, February.
  6. Dhillon, Amrita, 2004. "Political Parties And Coalition Formation," The Warwick Economics Research Paper Series (TWERPS) 697, University of Warwick, Department of Economics.
  7. Antonio Merlo, 2005. "Whither Political Economy? Theories, Facts and Issues," PIER Working Paper Archive 05-033, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 01 Dec 2005.
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