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Political Parties and Network Formation

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  • Miettinen, Topi

    (University of Helsinki)

  • Poutvaara, Panu

    (University of Munich)

Abstract

We argue that anti-corruption laws may provide an efficiency rationale for why political parties should meddle in the distribution of political nominations and government contracts. Anti-corruption laws forbid trade in spoils that politicians distribute. However, citizens may pay for gaining access to politicians and, thereby, to become potential candidates for nominations. Such rent-seeking results in excessive network formation. Political parties may reduce wasteful network formation, thanks to their ability to enter into exclusive membership contracts. This holds even though anti-corruption laws also bind political parties.

Suggested Citation

  • Miettinen, Topi & Poutvaara, Panu, 2006. "Political Parties and Network Formation," IZA Discussion Papers 1918, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp1918
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