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Partisan Goals and Electoral Interests: Brazilian Economic Reforms under Lula

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  • Maria Carolina da Silva Leme
  • Tomás Málaga

Abstract

Almost everyone was surprised by the reforms proposed by the Lula administration in Brazil. Once in power, they proposed reforms they voted against when in opposition. We analyze a game in which political parties, with partisan and electoral interest, try to approve reforms that benefit the majority of population but face an opposition with substantial power to determine their fate. The Opposition’s behavior may lead to different equilibrium: approval of the reform after an electoral cycle, with the party initially against the reform making it their own; not approval, with the parties taking turn in power; not approval, with the party that originally proposed the reform remaining in power, but with the deterioration of the economic situation

Suggested Citation

  • Maria Carolina da Silva Leme & Tomás Málaga, 2004. "Partisan Goals and Electoral Interests: Brazilian Economic Reforms under Lula," Econometric Society 2004 Latin American Meetings 178, Econometric Society.
    • Handle: RePEc:ecm:latm04:178
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    References listed on IDEAS

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    1. Alesina, Alberto & Drazen, Allan, 1991. "Why Are Stabilizations Delayed?," American Economic Review, American Economic Association, vol. 81(5), pages 1170-1188, December.
    2. Fernandez, Raquel & Rodrik, Dani, 1991. "Resistance to Reform: Status Quo Bias in the Presence of Individual-Specific Uncertainty," American Economic Review, American Economic Association, vol. 81(5), pages 1146-1155, December.
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    JEL classification:

    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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