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The Perils of Friendly Oversight

Author

Listed:
  • Gerardi, Dino
  • Monzon, Ignacio
  • Grillo, Edoardo

Abstract

In democratic societies, politicians craft reform proposals which are then subject to the scrutiny of external authorities. Politicians want their proposals approved and can work to improve their quality. Authorities have their own agendas: they may be in favor or against the reforms under their scrutiny. We study how the authority’s agenda affects the likelihood that a reform is approved and its quality. We show that an authority in favor of a reform can be detrimental towards its approval. This happens when it is easy to incentivize the politician’s work and the status quo alternative is not too attractive.

Suggested Citation

  • Gerardi, Dino & Monzon, Ignacio & Grillo, Edoardo, 2021. "The Perils of Friendly Oversight," CEPR Discussion Papers 16100, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:16100
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    Cited by:

    1. is not listed on IDEAS
    2. Andrea Gallice & Edoardo Grillo, 2022. "Legitimize through Endorsement," Carlo Alberto Notebooks 680 JEL Classification: C, Collegio Carlo Alberto.
    3. Gallice, Andrea & Grillo, Edoardo, 2025. "Shifting social norms through endorsements," Journal of Economic Behavior & Organization, Elsevier, vol. 231(C).
    4. Popov, Sergey V, 2022. "Tactical Refereeing and Signaling by Publishing," Cardiff Economics Working Papers E2022/14, Cardiff University, Cardiff Business School, Economics Section.
    5. Grillo, Edoardo & Nicolò, Antonio, 2025. "Learning the hard way: Conflicts, sanctions and military aid," Journal of Public Economics, Elsevier, vol. 242(C).

    More about this item

    Keywords

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    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
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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