Coalition Governments and Policy Reform with Asymmetric Information
With ideological parties being better informed about the state of the world than voters, the true motivation of policy proposals is hard to judge for the electorate. However, if reform proposals have to be agreed upon by coalition parties, it may become possible for the government to signal to the voters its private information about the necessity of reforms. Therefore, in coalition governments reforms will be more in line with policy requirements than in single-party governments. This is usually beneficial for the coalition parties as well as for the voter.
|Date of creation:||May 2008|
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|Publication status:||Published in Darmstadt Discussion Papers in Economics . 192 (2008-05)|
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- : Christian Schultz, .
"Polarization and Inefficient Policies,"
93-16, University of Copenhagen. Department of Economics.
- Martinelli, Cesar, 2001. " Elections with Privately Informed Parties and Voters," Public Choice, Springer, vol. 108(1-2), pages 147-67, July.
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- Cukierman, A. & Tommasi, M., 1997.
"When Does It Take a Nixon to Go to China,"
30-97, Tel Aviv.
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