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Importance of status quo when lobbying a coalition government

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  • Aytimur, Refik Emre

Abstract

Lobbying a coalition government is different than lobbying a single-party government, since in the case of a coalition government, the interest group can intervene in the intragovernmental decision process. In the case where the interest group likes the status quo more than the surplus maximizing policy, the interest group influences the policy without any contribution thanks to its credible threat to block unfavorable proposals. We show further that when, say, a leftist coalition government may be replaced by a rightist coalition government, the final policy reflects a rightist interest group's preferences more heavily due to the interest group's forward-looking considerations. --

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Bibliographic Info

Paper provided by University of Goettingen, Department of Economics in its series Center for European, Governance and Economic Development Research Discussion Papers with number 162.

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Date of creation: 2013
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Handle: RePEc:zbw:cegedp:162

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Keywords: lobbying; policy-making; coalition governments; status quo;

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  1. Grossman, Gene & Helpman, Elhanan, 1993. "Protection for Sale," CEPR Discussion Papers 827, C.E.P.R. Discussion Papers.
  2. Baskaran, Thushyanthan, 2013. "Coalition governments, cabinet size, and the common pool problem: Evidence from the German states," European Journal of Political Economy, Elsevier, vol. 32(C), pages 356-376.
  3. Torsten Persson & Guido Tabellini & Francesco Trebbi, 2001. "Electoral Rules and Corruption," CESifo Working Paper Series 416, CESifo Group Munich.
  4. Perotti, Roberto & Kontopoulos, Yianos, 2002. "Fragmented fiscal policy," Journal of Public Economics, Elsevier, vol. 86(2), pages 191-222, November.
  5. Besley, Timothy & Coate, Stephen, 2001. "Lobbying and Welfare in a Representative Democracy," Review of Economic Studies, Wiley Blackwell, vol. 68(1), pages 67-82, January.
  6. Torsten Persson & Gerard Roland & Guido Tabellini, 2004. "How Do Electoral Rules Shape Party Structures, Government Coalitions, and Economic Policies?," CESifo Working Paper Series 1115, CESifo Group Munich.
  7. David Baron & Alexander Hirsch, 2012. "Common agency lobbying over coalitions and policy," Economic Theory, Springer, vol. 49(3), pages 639-681, April.
  8. David P. Baron, 2006. "Competitive Lobbying and Supermajorities in a Majority-rule Institution," Scandinavian Journal of Economics, Wiley Blackwell, vol. 108(4), pages 607-642, December.
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