IDEAS home Printed from https://ideas.repec.org/p/ces/ceswps/_5281.html
   My bibliography  Save this paper

Democracy with Group Identity

Author

Listed:
  • Arye L. Hillman
  • Kfir Metsuyanim
  • Niklas Potrafke

Abstract

Group-based identity undermines democracy by impeding democratic change of government. A substantial literature has therefore studied how to make democracy consistent with group identity. We contribute to this literature by introducing the role of group decisiveness into voting incentives and mobilization of voters. In the elections that we study, for the same populations, accounting for income and other influences, group identity increased voter turnout on average by some 8 percentage points in local elections and decreased voter turnout by some 20 percentage points in national elections. We empirically investigate the effect of group identity on voter turnout and also evaluate whether group identity resulted in budgetary imbalance or replacement of local government because of disfunctionality. Our general contribution is to show how democracy can persist with group identity, although democracy in such instances differs from usual political competition.

Suggested Citation

  • Arye L. Hillman & Kfir Metsuyanim & Niklas Potrafke, 2015. "Democracy with Group Identity," CESifo Working Paper Series 5281, CESifo.
  • Handle: RePEc:ces:ceswps:_5281
    as

    Download full text from publisher

    File URL: https://www.cesifo.org/DocDL/cesifo1_wp5281.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Heinrich W. Ursprung, 2008. "Public Goods, Rent Dissipation, And Candidate Competition," Springer Books, in: Roger D. Congleton & Arye L. Hillman & Kai A. Konrad (ed.), 40 Years of Research on Rent Seeking 1, pages 329-346, Springer.
    2. Grossman, Gene M & Helpman, Elhanan, 1994. "Protection for Sale," American Economic Review, American Economic Association, vol. 84(4), pages 833-850, September.
    3. Geoffrey Brennan & Alan Hamlin, 1998. "Expressive voting and electoral equilibrium," Public Choice, Springer, vol. 95(1), pages 149-175, April.
    4. Malik, Adeel & Awadallah, Bassem, 2013. "The Economics of the Arab Spring," World Development, Elsevier, vol. 45(C), pages 296-313.
    5. Geoffrey Brennan & Michael Brooks, 2013. "Expressive voting," Chapters, in: William F. Shughart II & Laura Razzolini & Michael Reksulak (ed.), The Elgar Companion to Public Choice, Second Edition, chapter 7, pages 111-126, Edward Elgar Publishing.
    6. Konrad, Kai A., 2009. "Strategy and Dynamics in Contests," OUP Catalogue, Oxford University Press, number 9780199549603.
    7. Niklas Potrafke, 2013. "Democracy and countries with Muslim majorities: a reply and update," Public Choice, Springer, vol. 154(3), pages 323-332, March.
    8. Edward Glaeser & Giacomo Ponzetto & Andrei Shleifer, 2007. "Why does democracy need education?," Journal of Economic Growth, Springer, vol. 12(2), pages 77-99, June.
    9. Hamlin, Alan & Jennings, Colin, 2011. "Expressive Political Behaviour: Foundations, Scope and Implications," British Journal of Political Science, Cambridge University Press, vol. 41(3), pages 645-670, July.
    10. Charles Rowley & Nathanael Smith, 2009. "Islam’s democracy paradox: Muslims claim to like democracy, so why do they have so little?," Public Choice, Springer, vol. 139(3), pages 273-299, June.
    11. Robert J. Barro, 1999. "Determinants of Democracy," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages 158-183, December.
    12. Al-Ississ, Mohamad & Atallah, Samer, 2015. "Patronage and ideology in electoral behavior: Evidence from Egypt's first presidential elections," European Journal of Political Economy, Elsevier, vol. 37(C), pages 241-248.
    13. François Facchini, 2010. "Religion, law and development: Islam and Christianity--Why is it in Occident and not in the Orient that man invented the institutions of freedom?," Post-Print hal-00432954, HAL.
    14. Hillman,Arye L., 2009. "Public Finance and Public Policy," Cambridge Books, Cambridge University Press, number 9780521494267, April.
    15. Cooray, Arusha & Potrafke, Niklas, 2011. "Gender inequality in education: Political institutions or culture and religion?," European Journal of Political Economy, Elsevier, vol. 27(2), pages 268-280, June.
    16. Brender, Adi, 2003. "The effect of fiscal performance on local government election results in Israel: 1989-1998," Journal of Public Economics, Elsevier, vol. 87(9-10), pages 2187-2205, September.
    17. Potrafke, Niklas & Ursprung, Heinrich W., 2012. "Globalization and gender equality in the course of development," European Journal of Political Economy, Elsevier, vol. 28(4), pages 399-413.
    18. Borooah, Vani K. & Paldam, Martin, 2007. "Why is the world short of democracy?: A cross-country analysis of barriers to representative government," European Journal of Political Economy, Elsevier, vol. 23(3), pages 582-604, September.
    19. Hillman, Arye L, 1982. "Declining Industries and Political-Support Protectionist Motives," American Economic Review, American Economic Association, vol. 72(5), pages 1180-1187, December.
    20. Brennan,Geoffrey & Hamlin,Alan, 2000. "Democratic Devices and Desires," Cambridge Books, Cambridge University Press, number 9780521630207, September.
    21. Buchanan, James M. & Yoon, Yong J., 2004. "Majoritarian exploitation of the fiscal commons: general taxes-differential transfers," European Journal of Political Economy, Elsevier, vol. 20(1), pages 73-90, March.
    22. 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.
    23. Reingewertz, Yaniv, 2012. "Do municipal amalgamations work? Evidence from municipalities in Israel," Journal of Urban Economics, Elsevier, vol. 72(2), pages 240-251.
    24. Salmon, Pierre, 1987. "Decentralisation as an Incentive Scheme," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 3(2), pages 24-43, Summer.
    25. Tridimas, George, 2011. "The political economy of power-sharing," European Journal of Political Economy, Elsevier, vol. 27(2), pages 328-342, June.
    26. Gerber, Alan S. & Green, Donald P. & Larimer, Christopher W., 2008. "Social Pressure and Voter Turnout: Evidence from a Large-Scale Field Experiment," American Political Science Review, Cambridge University Press, vol. 102(1), pages 33-48, February.
    27. Posner,Daniel N., 2005. "Institutions and Ethnic Politics in Africa," Cambridge Books, Cambridge University Press, number 9780521541794, September.
    28. Rodrigo Martins & Francisco Veiga, 2013. "Economic performance and turnout at national and local elections," Public Choice, Springer, vol. 157(3), pages 429-448, December.
    29. Grigoriadis, Theocharis & Torgler, Benno, 2013. "Religious identity, public goods and centralization: Evidence from Russian and Israeli cities," Discussion Papers 2013/13, Free University Berlin, School of Business & Economics.
    30. Roland Hodler, 2018. "The Political Economics Of The Arab Spring," Economic Inquiry, Western Economic Association International, vol. 56(2), pages 821-836, April.
    31. Jerg Gutmann & Stefan Voigt, 2015. "The rule of law and constitutionalism in Muslim countries," Public Choice, Springer, vol. 162(3), pages 351-380, March.
    32. Baldacci, Emanuele & Hillman, Arye L. & Kojo, Naoko C., 2004. "Growth, governance, and fiscal policy transmission channels in low-income countries," European Journal of Political Economy, Elsevier, vol. 20(3), pages 517-549, September.
    33. Alberto Abadie & Javier Gardeazabal, 2003. "The Economic Costs of Conflict: A Case Study of the Basque Country," American Economic Review, American Economic Association, vol. 93(1), pages 113-132, March.
    34. Brennan, Geoffrey & Pettit, Philip, 2005. "The Economy of Esteem: An Essay on Civil and Political Society," OUP Catalogue, Oxford University Press, number 9780199289813.
    35. Timur Kuran, 2004. "Why the Middle East is Economically Underdeveloped: Historical Mechanisms of Institutional Stagnation," Journal of Economic Perspectives, American Economic Association, vol. 18(3), pages 71-90, Summer.
    36. Niklas Potrafke, 2012. "Islam and democracy," Public Choice, Springer, vol. 151(1), pages 185-192, April.
    37. Elinder, Mikael & Jordahl, Henrik & Poutvaara, Panu, 2015. "Promises, policies and pocketbook voting," European Economic Review, Elsevier, vol. 75(C), pages 177-194.
    38. Park, Hyun & Philippopoulos, Apostolis & Vassilatos, Vanghelis, 2005. "Choosing the size of the public sector under rent seeking from state coffers," European Journal of Political Economy, Elsevier, vol. 21(4), pages 830-850, December.
    39. Johannes Meya & Panu Poutvaara & Robert Schwager, 2015. "Pocketbook Voting and Social Preferences in Referenda," CESifo Working Paper Series 5267, CESifo.
    40. Roger D. Congleton & Arye L. Hillman (ed.), 2015. "Companion to the Political Economy of Rent Seeking," Books, Edward Elgar Publishing, number 15325.
    41. Eliyahu Yeret, 1995. "Dictators, Democracies, And Voters: A Comment On The Right Versus The Obligation To Vote," Economics and Politics, Wiley Blackwell, vol. 7(3), pages 263-270, November.
    42. Hillman,Arye L., 2009. "Public Finance and Public Policy," Cambridge Books, Cambridge University Press, number 9780521738057, April.
    43. Anthony Downs, 1957. "An Economic Theory of Political Action in a Democracy," Journal of Political Economy, University of Chicago Press, vol. 65(2), pages 135-135.
    44. Michael Lewis-Beck & Mary Stegmaier, 2013. "The VP-function revisited: a survey of the literature on vote and popularity functions after over 40 years," Public Choice, Springer, vol. 157(3), pages 367-385, December.
    45. Potters, Jan & Sloof, Randolph, 1996. "Interest groups: A survey of empirical models that try to assess their influence," European Journal of Political Economy, Elsevier, vol. 12(3), pages 403-442, November.
    46. Benny Geys, 2006. "‘Rational’ Theories of Voter Turnout: A Review," Political Studies Review, Political Studies Association, vol. 4(1), pages 16-35, January.
    47. João Amaro de Matos & Pedro Barros, 2004. "Social Norms and the Paradox of Elections’ Turnout," Public Choice, Springer, vol. 121(1), pages 239-255, October.
    48. Avi Ben-Bassat & Momi Dahan, 2012. "Social identity and voting behavior," Public Choice, Springer, vol. 151(1), pages 193-214, April.
    49. Bruno Frey, 1971. "Why do high income people participate more in politics?," Public Choice, Springer, vol. 11(1), pages 101-105, September.
    50. Gordon Tullock, 1959. "Problems of Majority Voting," Journal of Political Economy, University of Chicago Press, vol. 67(6), pages 571-571.
    51. Arye L. Hillman, 2007. "Democracy in Low-Income Countries," Chapters, in: José Casas Pardo & Pedro Schwartz (ed.), Public Choice and the Challenges of Democracy, chapter 16, Edward Elgar Publishing.
    52. José Casas Pardo & Pedro Schwartz (ed.), 2007. "Public Choice and the Challenges of Democracy," Books, Edward Elgar Publishing, number 12578.
    53. Kirchgassner, Gebhard, 1992. "Towards a theory of low-cost decisions," European Journal of Political Economy, Elsevier, vol. 8(2), pages 305-320, May.
    54. Nannestad, Peter & Paldam, Martin, 1997. "The grievance asymmetry revisited: A micro study of economic voting in Denmark,1986-1992," European Journal of Political Economy, Elsevier, vol. 13(1), pages 81-99, February.
    55. Peltzman, Sam, 1976. "Toward a More General Theory of Regulation," Journal of Law and Economics, University of Chicago Press, vol. 19(2), pages 211-240, August.
    56. Bertocchi, Graziella & Spagat, Michael, 2001. "The Politics of Co-optation," Journal of Comparative Economics, Elsevier, vol. 29(4), pages 591-607, December.
    57. Hillman, Arye L., 2010. "Expressive behavior in economics and politics," European Journal of Political Economy, Elsevier, vol. 26(4), pages 403-418, December.
    58. Posner,Daniel N., 2005. "Institutions and Ethnic Politics in Africa," Cambridge Books, Cambridge University Press, number 9780521833981, September.
    59. Arye L. Hillman, 2013. "Rent seeking," Chapters, in: William F. Shughart II & Laura Razzolini & Michael Reksulak (ed.), The Elgar Companion to Public Choice, Second Edition, chapter 19, pages 307-330, Edward Elgar Publishing.
    60. James Buchanan & Dwight Lee, 1986. "Vote buying in a stylized setting," Public Choice, Springer, vol. 49(1), pages 3-15, January.
    61. Schram, Arthur & van Winden, Frans, 1991. "Why people vote : Free riding and the production and consumption of social pressure," Journal of Economic Psychology, Elsevier, vol. 12(4), pages 575-620, December.
    62. Joel M. Guttman & Naftali Hilger & Yochanan Shachmurove, 1994. "Voting as Investment vs. Voting as Consumption: New Evidence," Kyklos, Wiley Blackwell, vol. 47(2), pages 197-207, May.
    63. May Elsayyad & Shima’a Hanafy, 2014. "Voting Islamist or voting secular? An empirical analysis of voting outcomes in Egypt’s “Arab Spring”," Public Choice, Springer, vol. 160(1), pages 109-130, July.
    64. Francois Facchini, 2010. "Religion, law and development: Islam and Christianity—Why is it in Occident and not in the Orient that man invented the institutions of freedom?," European Journal of Law and Economics, Springer, vol. 29(1), pages 103-129, February.
    65. William F. Shughart II & Laura Razzolini & Michael Reksulak (ed.), 2013. "The Elgar Companion to Public Choice, Second Edition," Books, Edward Elgar Publishing, number 14039.
    66. Amin, Magdi & Assaad, Ragui & al-Baharna, Nazar & Dervis, Kemal & Desai, Raj M. & Dhillon, Navtej S. & Galal, Ahmed & Ghanem, Hafez & Graham, Carol & Kaufmann, Daniel, 2012. "After the Spring: Economic Transitions in the Arab World," OUP Catalogue, Oxford University Press, number 9780199924929.
    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. Arye L. Hillman & Heinrich W. Ursprung, 2016. "Where are the rent seekers?," Constitutional Political Economy, Springer, vol. 27(2), pages 124-141, June.
    2. Andrea Bonoldi & Chiara Dalle Nogare & Martin Mosler & Niklas Potrafke, 2020. "Do inheritance rules affect voter turnout? Evidence from an Alpine region," Constitutional Political Economy, Springer, vol. 31(4), pages 395-445, December.
    3. Schnellenbach, Jan & Schubert, Christian, 2015. "Behavioral political economy: A survey," European Journal of Political Economy, Elsevier, vol. 40(PB), pages 395-417.
    4. Peter J. Boettke & Henry A. Thompson, 2022. "Identity and off-diagonals: how permanent winning coalitions destroy democratic governance," Public Choice, Springer, vol. 191(3), pages 483-499, June.
    5. Baskaran, Thushyanthan & Brender, Adi & Blesse, Sebastian & Reingewertz, Yaniv, 2016. "Revenue decentralization, central oversight and the political budget cycle: Evidence from Israel," European Journal of Political Economy, Elsevier, vol. 42(C), pages 1-16.
    6. Miaari, Sami H. & Loewenthal, Amit & Adnan, Wifag, 2022. "Do Economic Changes Affect the Political Preferences of Arabs in Israel?," IZA Discussion Papers 14988, Institute of Labor Economics (IZA).
    7. Niklas Potrafke & Felix Roesel, 2020. "Opening hours of polling stations and voter turnout: Evidence from a natural experiment," The Review of International Organizations, Springer, vol. 15(1), pages 133-163, January.
    8. Arenas, Andreu, 2016. "Sticky votes," Journal of Economic Behavior & Organization, Elsevier, vol. 132(PA), pages 12-25.
      • Andreu ARENAS, 2016. "Sticky Votes," LIDAM Reprints CORE 2763, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    9. Arye L. Hillman & Niklas Potrafke, 2016. "Economic Freedom and Religion: An Empirical Investigation," CESifo Working Paper Series 6017, CESifo.
    10. Johannes Meya & Panu Poutvaara & Robert Schwager, 2015. "Pocketbook Voting and Social Preferences in Referenda," CESifo Working Paper Series 5267, CESifo.
    11. Arye L. Hillman & Niklas Potrafke, 2018. "Economic Freedom and Religion," Public Finance Review, , vol. 46(2), pages 249-275, March.
    12. Agneman, Gustav, 2022. "How economic expectations shape preferences for national independence: Evidence from Greenland," European Journal of Political Economy, Elsevier, vol. 72(C).
    13. Meya, Johannes & Poutvaara, Panu & Schwager, Robert, 2020. "Pocketbook voting, social preferences, and expressive motives in referenda," Journal of Economic Behavior & Organization, Elsevier, vol. 175(C), pages 185-205.
    14. Marco Giani & Pierre-Guillaume Méon, 2023. "Elections and norms of behaviour: a survey," Working Papers CEB 23-001, ULB -- Universite Libre de Bruxelles.
    15. Aggeborn, Linuz, 2016. "Voter turnout and the size of government," European Journal of Political Economy, Elsevier, vol. 43(C), pages 29-40.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Niklas Potrafke, 2016. "Policies against human trafficking: the role of religion and political institutions," Economics of Governance, Springer, vol. 17(4), pages 353-386, November.
    2. Arye L. Hillman & Heinrich W. Ursprung, 2016. "Where are the rent seekers?," Constitutional Political Economy, Springer, vol. 27(2), pages 124-141, June.
    3. Gouda, Moamen & Potrafke, Niklas, 2016. "Gender equality in Muslim-majority countries," Economic Systems, Elsevier, vol. 40(4), pages 683-698.
    4. Arye L. Hillman & Niklas Potrafke, 2016. "Economic Freedom and Religion: An Empirical Investigation," CESifo Working Paper Series 6017, CESifo.
    5. Arye L. Hillman & Niklas Potrafke, 2018. "Economic Freedom and Religion," Public Finance Review, , vol. 46(2), pages 249-275, March.
    6. Niklas Potrafke & Felix Roesel, 2020. "Opening hours of polling stations and voter turnout: Evidence from a natural experiment," The Review of International Organizations, Springer, vol. 15(1), pages 133-163, January.
    7. Schnellenbach, Jan & Schubert, Christian, 2015. "Behavioral political economy: A survey," European Journal of Political Economy, Elsevier, vol. 40(PB), pages 395-417.
    8. Hillman, Arye L., 2010. "Expressive behavior in economics and politics," European Journal of Political Economy, Elsevier, vol. 26(4), pages 403-418, December.
    9. Arye L. Hillman & Ngo Van Long, 2017. "Rent Seeking: The Social Cost of Contestable Benefits," CESifo Working Paper Series 6462, CESifo.
    10. Niklas Potrafke, 2012. "Islam and democracy," Public Choice, Springer, vol. 151(1), pages 185-192, April.
    11. Arye Hillman & Ngo Van Long, 2017. "The social cost of contestable benefits," CIRANO Working Papers 2017s-11, CIRANO.
    12. Aggeborn, Linuz, 2016. "Voter turnout and the size of government," European Journal of Political Economy, Elsevier, vol. 43(C), pages 29-40.
    13. Arye L. Hillman & Heinrich W. Ursprung, 2016. "Academic exclusion: some experiences," Public Choice, Springer, vol. 167(1), pages 1-20, April.
    14. Levy, Daniel & Snir, Avichai, 2022. "Potterian Economics," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 1, pages 1-32.
    15. Facchini, François & Melki, Mickaël, 2013. "Efficient government size: France in the 20th century," European Journal of Political Economy, Elsevier, vol. 31(C), pages 1-14.
    16. Schnellenbach, Jan & Schubert, Christian, 2014. "Behavioral public choice: A survey," Freiburg Discussion Papers on Constitutional Economics 14/03, Walter Eucken Institut e.V..
    17. Raphael Becker & Arye Hillman & Niklas Potrafke & Alexander Schwemmer, 2015. "The preoccupation of the United Nations with Israel: Evidence and theory," The Review of International Organizations, Springer, vol. 10(4), pages 413-437, December.
    18. Cooray, Arusha & Potrafke, Niklas, 2011. "Gender inequality in education: Political institutions or culture and religion?," European Journal of Political Economy, Elsevier, vol. 27(2), pages 268-280, June.
    19. Emilia Justyna Powell & Steven Christian McDowell & Robert O’Brien & Julia Oksasoglu, 2021. "Islam-based legal language and state governance: democracy, strength of the judiciary and human rights," Constitutional Political Economy, Springer, vol. 32(3), pages 376-412, September.
    20. Meya, Johannes & Poutvaara, Panu & Schwager, Robert, 2015. "Pocketbook voting and social preferences in referenda," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113120, Verein für Socialpolitik / German Economic Association.

    More about this item

    Keywords

    voting turnout; voter decisiveness; expressive voting; instrumental voting; local government; Arab Spring;
    All these keywords.

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

    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:ces:ceswps:_5281. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Klaus Wohlrabe (email available below). General contact details of provider: https://edirc.repec.org/data/cesifde.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.