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Term limits and electoral accountability

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  • Smart, Michael
  • Sturm, Daniel M.

Abstract

Periodic elections are the main instrument through which voters can hold politicians accountable. From this perspective term limits, which restrict voters' ability to reward politicians with re-election, appear counterproductive. We show that despite the disciplining effect of elections, term limits can be ex-ante welfare improving from the perspective of voters. By reducing the value of holding office, term limits can induce politicians to implement policies that are closer to their private preferences. Such “truthful” behavior by incumbents in turn results in better screening of incumbents. We characterize under which circumstances two-term or even longer term limits are the optimal institution for voters.

Suggested Citation

  • Smart, Michael & Sturm, Daniel M., 2013. "Term limits and electoral accountability," Journal of Public Economics, Elsevier, vol. 107(C), pages 93-102.
    • Handle: RePEc:eee:pubeco:v:107:y:2013:i:c:p:93-102
    DOI: 10.1016/j.jpubeco.2013.08.011
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    More about this item

    Keywords

    Political agency; Accountability; Term limits;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government

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