Constitutional Rules and Efficient Policies
This paper compares the ability to select the efficient policy of a parliamentary and a presidential constitutional setup. In order to do it we build a dynamic theoretical model with asymmetric information that succeeds in addressing both the politicians accountability and the competence dimensions. The main difference between the two institutional frameworks is the presence of the confidence vote in the parliamentary system that may cause elections before the natural end of the legislature. The equilibrium predictions suggest that, exactly because of the different incentives created by the confidence vote, the parliamentary system has a higher probability of selecting the efficient policy the higher is the quality of politicians that are member of the legislative body.
|Date of creation:||Mar 2014|
|Date of revision:||Mar 2014|
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- Daniel Diermeier & Razvan Vlaicu, 2011. "Executive Control and Legislative Success," Review of Economic Studies, Oxford University Press, vol. 78(3), pages 846-871.
- Besley, Timothy & Coate, Stephen, 1998. "Sources of Inefficiency in a Representative Democracy: A Dynamic Analysis," American Economic Review, American Economic Association, vol. 88(1), pages 139-156, March.
- Torsten Persson & Guido Tabellini, 2002. "Political Economics: Explaining Economic Policy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262661314.
- Eric Maskin & Jean Tirole, 2004.
"The Politician and the Judge: Accountability in Government,"
American Economic Review,
American Economic Association, vol. 94(4), pages 1034-1054, September.
- Eric Maskin, 2003. "The Politician and the Judge: Accountability in Government," Theory workshop papers 505798000000000076, UCLA Department of Economics.
- Eric Maskin & Jean Tirole, 2004. "The Politician and the Judge: Accountability in Government," Economics Working Papers 0020, Institute for Advanced Study, School of Social Science.
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