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Priors Rule: When Do Malfeasance Revelations Help Or Hurt Incumbent Parties?

Author

Listed:
  • Eric Arias
  • Horacio Larreguy
  • John Marshall
  • Pablo Querubín

Abstract

Effective policy-making requires that voters avoid electing malfeasant politicians. However, informing voters of incumbent malfeasance in corrupt contexts may not reduce incumbent support. As our simple learning model shows, electoral sanctioning is limited where voters already believed incumbents to be malfeasant, while information’s effect on turnout is non-monotonic in the magnitude of reported malfeasance. We conducted a field experiment in Mexico that informed voters about malfeasant mayoral spending before municipal elections, to test whether these Bayesian predictions apply in a developing context where many voters are poorly informed. Consistent with voter learning, the intervention increased incumbent vote share where voters possessed unfavorable prior beliefs and when audit reports caused voters to favorably update their posterior beliefs about the incumbent’s malfeasance. Furthermore, we find that low and, especially, high malfeasance revelations increased turnout, while less surprising information reduced turnout. These results suggest that improved governance requires greater transparency and citizen expectations.

Suggested Citation

  • Eric Arias & Horacio Larreguy & John Marshall & Pablo Querubín, 2022. "Priors Rule: When Do Malfeasance Revelations Help Or Hurt Incumbent Parties?," Journal of the European Economic Association, European Economic Association, vol. 20(4), pages 1433-1477.
  • Handle: RePEc:oup:jeurec:v:20:y:2022:i:4:p:1433-1477.
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    File URL: http://hdl.handle.net/10.1093/jeea/jvac015
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    Cited by:

    1. Cañete-Straub, Rumilda & Miquel-Florensa, Josepa & Straub, Stéphane & Van der Straeten, Karine, 2020. "Voting corrupt politicians out of office? Evidence from a survey experiment in Paraguay," Journal of Economic Behavior & Organization, Elsevier, vol. 179(C), pages 223-239.
    2. Muhammad Sohail Akhtar & Muhammad Zubair Chishti & Ahmer Bilal, 2023. "Incumbency and tax compliance: evidence from Pakistan," SN Business & Economics, Springer, vol. 3(3), pages 1-26, March.
    3. Olivier De Groote & Axel Gautier & Frank Verboven, 2020. "The political economic of financing climate policy : evidence from the solar PV subsidy programs," Working Paper Research 389, National Bank of Belgium.
    4. Monica Martinez-Bravo & Carlos Sanz, 2022. "The Management of the Pandemic and its Effects on Trust and Accountability," Working Papers wp2022_2207, CEMFI.
    5. De La O, Ana L. & Fernández-Vázquez, Pablo & Martel García, Fernando, 2023. "Federal and state audits do not increase compliance with a grant program to improve municipal infrastructure: A pre-registered field experiment," Journal of Development Economics, Elsevier, vol. 162(C).
    6. Loreto Cox & Sylvia Eyzaguirre & Francisco Gallego & Maximiliano García, 2020. "Punishing Mayors Who Fail the Test: How do Voters Respond to Information on Educational Outcomes?," Documentos de Trabajo 555, Instituto de Economia. Pontificia Universidad Católica de Chile..

    More about this item

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption

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