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Corruption and Power in Democracies

Listed author(s):
  • Francesco Giovannoni

    ()

According to Acton: "Power corrupts and absolute power corrupts absolutely". We study the implications of Acton's dictum in models where citizens vote (for three parties) and governments then form in a series of elections. In each election, parties have fixed tastes for graft, which affect negotiations to form a government if parliament hangs; but incumbency changes tastes across elections. We argue that combinations of Acton's dictum with various assumptions about citizen sophistication and inter-party commitments generate tight and testable predictions which describe plausible dynamics of government formation in an otherwise stationary environment.

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Paper provided by Department of Economics, University of Bristol, UK in its series Bristol Economics Discussion Papers with number 12/624.

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Length: 33 pages
Date of creation: Jun 2012
Handle: RePEc:bri:uobdis:12/624
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