IDEAS home Printed from https://ideas.repec.org/a/bla/kyklos/v69y2016i1p65-81.html
   My bibliography  Save this article

Supermajorities and Political Rent Extraction

Author

Listed:
  • Björn Kauder
  • Niklas Potrafke

Abstract

Models of political competition portray political candidates as seeking the support of the median voter to win elections by majority voting. In practice, political candidates seek supermajorities rather than majorities based on support of the median voter. We study the political benefits from supermajorities using data from Bavaria, the largest German state. Members of the Bavarian parliament had been permitted to hire relatives as office employees but in the year 2000 the practice was prohibited, with exceptions that allowed continuation of employment of previously hired relatives. The circumstances provide an informative setting to relate political behavior to protection of incumbency. Our results show that the likelihood of politicians to hire relatives increased with the margin of the majority for the incumbent in the previous election. When the majority increased by one percentage point, the likelihood of hiring relatives increased by about one percentage point. Supermajorities thus facilitated political rent extraction.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Björn Kauder & Niklas Potrafke, 2016. "Supermajorities and Political Rent Extraction," Kyklos, Wiley Blackwell, vol. 69(1), pages 65-81, February.
  • Handle: RePEc:bla:kyklos:v:69:y:2016:i:1:p:65-81
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/kykl.12103
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Arnold, Felix & Kauder, Björn & Potrafke, Niklas, 2014. "Outside earnings, absence, and activity: Evidence from German parliamentarians," European Journal of Political Economy, Elsevier, vol. 36(C), pages 147-157.
    2. Appelbaum, Elie & Katz, Eliakim, 1987. "Seeking Rents by Setting Rents: The Political Economy of Rent Seeking," Economic Journal, Royal Economic Society, vol. 97(387), pages 685-699, September.
    3. Stefano Gagliarducci & Tommaso Nannicini & Paolo Naticchioni, 2011. "Electoral Rules and Politicians' Behavior: A Micro Test," American Economic Journal: Economic Policy, American Economic Association, vol. 3(3), pages 144-174, August.
    4. Vincenzo Scoppa, 2009. "Intergenerational transfers of public sector jobs: a shred of evidence on nepotism," Public Choice, Springer, vol. 141(1), pages 167-188, October.
    5. Johannes Becker & Andreas Peichl & Johannes Rincke, 2009. "Politicians’ outside earnings and electoral competition," Public Choice, Springer, vol. 140(3), pages 379-394, September.
    6. Messner, Matthias & Polborn, Mattias K., 2004. "Paying politicians," Journal of Public Economics, Elsevier, vol. 88(12), pages 2423-2445, December.
      • Matthias Messner & Mattias Polborn, 2003. "Paying Politicians," Working Papers 246, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    7. Jac C. Heckelman & Keith L. Dougherty, 2010. "Majority Rule versus Supermajority Rules: Their Effects on Narrow and Broad Taxes," Public Finance Review, , vol. 38(6), pages 738-761, November.
    8. Bernecker, Andreas, 2014. "Do politicians shirk when reelection is certain? Evidence from the German parliament," European Journal of Political Economy, Elsevier, vol. 36(C), pages 55-70.
    9. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    10. Kauder, Björn & Potrafke, Niklas, 2015. "Just hire your spouse! Evidence from a political scandal in Bavaria," European Journal of Political Economy, Elsevier, vol. 38(C), pages 42-54.
    11. Paul Dragos Aligica & Vlad Tarko, 2014. "Crony Capitalism: Rent Seeking, Institutions and Ideology," Kyklos, Wiley Blackwell, vol. 67(2), pages 156-176, May.
    12. Claudio Ferraz & Frederico Finan, 2008. "Exposing Corrupt Politicians: The Effects of Brazil's Publicly Released Audits on Electoral Outcomes," The Quarterly Journal of Economics, Oxford University Press, vol. 123(2), pages 703-745.
    13. Galasso, Vincenzo & Nannicini, Tommaso, 2011. "Competing on Good Politicians," American Political Science Review, Cambridge University Press, vol. 105(1), pages 79-99, February.
    14. Kotakorpi, Kaisa & Poutvaara, Panu, 2011. "Pay for politicians and candidate selection: An empirical analysis," Journal of Public Economics, Elsevier, vol. 95(7-8), pages 877-885, August.
    15. Hirano, Shigeo & Snyder, James M., 2012. "What Happens to Incumbents in Scandals?," Quarterly Journal of Political Science, now publishers, vol. 7(4), pages 447-456, October.
    16. Roger D. Congleton & Arye L. Hillman (ed.), 2015. "Companion to the Political Economy of Rent Seeking," Books, Edward Elgar Publishing, number 15325.
    17. Hirano, Shigeo & Snyder, James M., 2014. "Primary Elections and the Quality of Elected Officials," Quarterly Journal of Political Science, now publishers, vol. 9(4), pages 473-500, December.
    18. Gagliarducci, Stefano & Nannicini, Tommaso & Naticchioni, Paolo, 2010. "Moonlighting politicians," Journal of Public Economics, Elsevier, vol. 94(9-10), pages 688-699, October.
    19. Campbell, Rosie & Cowley, Philip, 2015. "Attitudes to Moonlighting Politicians: Evidence from the United Kingdom," Journal of Experimental Political Science, Cambridge University Press, vol. 2(1), pages 63-72, April.
    20. Dongwon Lee & Thomas E. Borcherding & Youngho Kang, 2014. "Public Spending and the Paradox of Supermajority Rule," Southern Economic Journal, Southern Economic Association, vol. 80(3), pages 614-632, January.
    21. Buchanan, James M & Congleton, Roger D, 1994. "The Incumbency Dilemma and Rent Extraction by Legislators," Public Choice, Springer, vol. 79(1-2), pages 47-60, April.
    22. Geys, Benny & Mause, Karsten, 2012. "Delegation, accountability & legislator moonlighting: Agency problems in Germany," Discussion Papers, Research Professorship & Project "The Future of Fiscal Federalism" SP II 2012-105, WZB Berlin Social Science Center.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Björn Kauder & Niklas Potrafke, 2017. "Gibt es Schelte für Bundestagsabgeordnete, die nicht mit ihrer eigenen Partei stimmen?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 70(12), pages 26-29, June.
    2. Benjamin Monnery, 2019. "Collaborateurs, emplois familiaux et niveau d’activité des parlementaires français," Revue économique, Presses de Sciences-Po, vol. 70(1), pages 5-29.
    3. Niklas Potrafke & Felix Rösel, 2016. "A Banana Republic? Trust in Electoral Institutions in Western Democracies - Evidence from a Presidential Election in Austria," CESifo Working Paper Series 6254, CESifo Group Munich.
    4. Maaser, Nicola & Stratmann, Thomas, 2018. "Election rules, legislators' incentives, and policy outcomes: Evidence from the mixed member system in Germany," European Journal of Political Economy, Elsevier, vol. 54(C), pages 227-239.
    5. Hillman, Arye L. & Long, Ngo V., 2018. "Policies and prizes," European Journal of Political Economy, Elsevier, vol. 54(C), pages 99-109.
    6. Björn Kauder & Niklas Potrafke, 2018. "Warum stimmen Unionsabgeordnete für die Ehe für alle? Es ist die Konkurrenz im Wahlkreis!," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 71(24), pages 26-27, December.
    7. Björn Kauder & Niklas Potrafke, 2019. "Conservative Politicians and Voting on Same‐sex Marriage," German Economic Review, Verein für Socialpolitik, vol. 20(4), pages 600-617, November.
    8. Debski, Julia & Jetter, Michael & Mösle, Saskia & Stadelmann, David, 2018. "Gender and corruption: The neglected role of culture," European Journal of Political Economy, Elsevier, vol. 55(C), pages 526-537.
    9. David Stadelmann & Marco Portmann & Reiner Eichenberger, 2018. "Military Service of Politicians, Public Policy, and Parliamentary Decisions," CESifo Economic Studies, CESifo, vol. 64(4), pages 639-666.
    10. David Stadelmann, 2018. "Testing Proposals for a “Democracy of the Future”," Homo Oeconomicus: Journal of Behavioral and Institutional Economics, Springer, vol. 35(1), pages 123-126, June.
    11. Björn Kauder & Manuela Krause & Niklas Potrafke, 2018. "Electoral cycles in MPs’ salaries: evidence from the German states," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 25(4), pages 981-1000, August.
    12. repec:bla:kyklos:v:70:y:2017:i:2:p:220-255 is not listed on IDEAS
    13. Stadelmann, David & Portmann, Marco & Eichenberger, Reiner, 2016. "The Influence of Party Affiliations on Representation of Voter Preferences in Majoritarian vs. Proportional Systems," Annual Conference 2016 (Augsburg): Demographic Change 145705, Verein für Socialpolitik / German Economic Association.
    14. Björn Kauder & Niklas Potrafke & Marina Riem, 2017. "Do Parties Punish MPs for Voting Against the Party Line?," CESifo Economic Studies, CESifo, vol. 63(3), pages 317-332.
    15. Felix Arnold & Ronny Freier & Magdalena Pallauf & David Stadelmann, 2016. "Voting for direct democratic participation: evidence from an initiative election," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 23(4), pages 716-740, August.
    16. Arye L. Hillman & Heinrich W. Ursprung, 2016. "Where are the rent seekers?," Constitutional Political Economy, Springer, vol. 27(2), pages 124-141, June.

    More about this item

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:kyklos:v:69:y:2016:i:1:p:65-81. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley Content Delivery). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0023-5962 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.