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Coalition governments in a model of parliamentary democracy

Author

Listed:
  • Siddhartha Bandyopadhyay

    (University of Birmingham)

  • Mandar Oak

    (Williams College)

Abstract

We analyse how the importance of party ideology relative to benefits from holding o±ce influences the formation of coalitions in a parliamentary democ- racy when no party has an absolute majority. In equilibrium, the types of coalitions that are formed may be minimal winning, minority as well as surplus and they need not be ideologically 'connected'. The type of government that is formed in equi- librium depends upon the importance of rents of o±ce relative to ideology as well as the seat shares of the parties. We ¯nd that when rents are high, governments cannot be surplus. When rents are low or the formateur is close to the median, minority governments occur for a wider ideological dispersion. Further, there is a non monotonic relationship between connectedness of coalitions and rents. Finally, we compare and contrast our model with existing models.

Suggested Citation

  • Siddhartha Bandyopadhyay & Mandar Oak, 2004. "Coalition governments in a model of parliamentary democracy," Discussion Papers 04-18, Department of Economics, University of Birmingham.
    • Handle: RePEc:bir:birmec:04-18
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    1. is not listed on IDEAS
    2. Siddhartha Bandyopadhyay & Kalyan Chatterjee & Tomas Sjöström, 2013. "Pre-electoral Coalitions and Post-election Bargaining," World Scientific Book Chapters, in: Bargaining in the Shadow of the Market Selected Papers on Bilateral and Multilateral Bargaining, chapter 7, pages 129-181, World Scientific Publishing Co. Pte. Ltd..
    3. Tridimas, George, 2011. "The political economy of power-sharing," European Journal of Political Economy, Elsevier, vol. 27(2), pages 328-342, June.
    4. Hughes, Niall, 2016. "Voting in legislative elections under plurality rule," Journal of Economic Theory, Elsevier, vol. 166(C), pages 51-93.
    5. 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.
    6. Siddhartha Bandyopadhyay & Mandar Oak, 2022. "Party Formation and Coalitional Bargaining in a Model of Proportional Representation," Games, MDPI, vol. 13(4), pages 1-17, June.
    7. Tsuchimoto Menkyna, Fusako, 2014. "A theory of ethnic diversity and income distribution: A legislative bargaining approach," European Journal of Political Economy, Elsevier, vol. 34(C), pages 52-67.
    8. Lewis, Blane D. & Hendrawan, Adrianus, 2019. "The impact of majority coalitions on local government spending, service delivery, and corruption in Indonesia," European Journal of Political Economy, Elsevier, vol. 58(C), pages 178-191.
    9. Gersbach, Hans & Schneider, Maik T., 2012. "Tax contracts, party bargaining, and government formation," Mathematical Social Sciences, Elsevier, vol. 64(2), pages 173-192.
    10. repec:ebl:ecbull:v:4:y:2006:i:28:p:1-12 is not listed on IDEAS
    11. Bonaparte, Yosef, 2025. "Presidential versus parliamentary: Political system and stock market volatility," European Journal of Political Economy, Elsevier, vol. 87(C).
    12. Luca Murrau, 2006. "An Overview Across the New Political Economy Literature," Economics Bulletin, AccessEcon, vol. 4(28), pages 1-12.
    13. 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.
    14. Piolatto, Amedeo, 2011. "Plurality versus proportional electoral rule: Which is most representative of voters?," European Journal of Political Economy, Elsevier, vol. 27(2), pages 311-327, June.
    15. Blane D. Lewis & Adrianus Hendrawan, 2018. "The impact of mayor-council coalitions on local government spending, service delivery, and corruption in Indonesia," Departmental Working Papers 2018-19, The Australian National University, Arndt-Corden Department of Economics.
    16. Bjorvatn, Kjetil & Naghavi, Alireza, 2011. "Rent seeking and regime stability in rentier states," European Journal of Political Economy, Elsevier, vol. 27(4), pages 740-748.

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    Keywords

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    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H19 - Public Economics - - Structure and Scope of Government - - - Other

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