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Party Discipline and Pork Barrel Politics

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  • Gene M. Grossman
  • Elhanan Helpman

Abstract

Polities differ in the extent to which political parties can pre-commit to carry out promised policy actions if they take power. Commitment problems may arise due to a divergence between the ex ante incentives facing national parties that seek to capture control of the legislature and the ex post incentives facing individual legislators, whose interests may be more parochial. We study how differences in "party discipline" shape fiscal policy choices. In particular, we examine the determinants of national spending on local public goods in a three-stage game of campaign rhetoric, voting, and legislative decision-making. We find that the rhetoric and reality of pork-barrel spending, and also the efficiency of the spending regime, bear a non-monotonic relationship to the degree of party discipline.

Suggested Citation

  • Gene M. Grossman & Elhanan Helpman, 2005. "Party Discipline and Pork Barrel Politics," NBER Working Papers 11396, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:11396
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    References listed on IDEAS

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    1. Gene M. Grossman & Elhanan Helpman, 2005. "A Protectionist Bias in Majoritarian Politics," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(4), pages 1239-1282.
    2. Timothy Besley & Stephen Coate, 1997. "An Economic Model of Representative Democracy," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(1), pages 85-114.
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    6. Nicola Persico & Alessandro Lizzeri, 2001. "The Provision of Public Goods under Alternative Electoral Incentives," American Economic Review, American Economic Association, vol. 91(1), pages 225-239, March.
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    8. Myerson, Roger B., 1993. "Incentives to Cultivate Favored Minorities Under Alternative Electoral Systems," American Political Science Review, Cambridge University Press, vol. 87(4), pages 856-869, December.
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    Cited by:

    1. Guccio, Calogero & Mazza, Isidoro, 2014. "On the political determinants of the allocation of funds to heritage authorities," European Journal of Political Economy, Elsevier, vol. 34(C), pages 18-38.
    2. Gene M. Grossman & Elhanan Helpman, 2005. "A Protectionist Bias in Majoritarian Politics," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(4), pages 1239-1282.
    3. Jeroen Klomp, 2020. "Subsidizing power," Scottish Journal of Political Economy, Scottish Economic Society, vol. 67(3), pages 300-321, July.
    4. Marco Portmann & David Stadelmann & Reiner Eichenberger, 2010. "District Magnitude and Representation of the Majority?s Preferences: Quasi-Experimental Evidence from Popular and Parliamentary Votes," CREMA Working Paper Series 2010-13, Center for Research in Economics, Management and the Arts (CREMA).
    5. Constantin-Marius APOSTOAIE, 2017. "Relevant Determinants Of The Political Parties’ Environmental Preference," Scientific Annals of Economics and Business (continues Analele Stiintifice), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 63(3), pages 51-69, January.
    6. Riccardo Crescenzi & George Petrakos, 2016. "The European Union and its neighboring countries: The economic geography of trade, Foreign Direct Investment and development," Environment and Planning C, , vol. 34(4), pages 581-591, June.
    7. Anke S. Kessler, 2014. "Communication in Federal Politics: Universalism, Policy Uniformity, and the Optimal Allocation of Fiscal Authority," Journal of Political Economy, University of Chicago Press, vol. 122(4), pages 766-805.
    8. Aaron Hedlund, 2019. "Pork-Barrel Politics and Polarization," Review, Federal Reserve Bank of St. Louis, vol. 101(1), pages 57-68.
    9. Antonio Abatemarco & Roberto Dell’Anno, 2020. "Fiscal illusion and progressive taxation with retrospective voting," Economic and Political Studies, Taylor & Francis Journals, vol. 8(2), pages 246-273, April.
    10. Drazen, Allan & Eslava, Marcela, 2006. "Pork Barrel Cycles," Foerder Institute for Economic Research Working Papers 275704, Tel-Aviv University > Foerder Institute for Economic Research.
    11. Stadelmann, David & Portmann, Marco & Eichenberger, Reiner, 2013. "Quantifying parliamentary representation of constituents’ preferences with quasi-experimental data," Journal of Comparative Economics, Elsevier, vol. 41(1), pages 170-180.
    12. Roberson, Brian, 2006. "Pork-barrel politics, discriminatory policies and fiscal federalism [Kuhhandel in der Lokalpolitik und der fiskalische Föderalismus]," Discussion Papers, Research Unit: Market Processes and Governance SP II 2006-15, WZB Berlin Social Science Center.
    13. Marco Portmann & David Stadelmann & Reiner Eichenberger, 2012. "District magnitude and representation of the majority’s preferences: Evidence from popular and parliamentary votes," Public Choice, Springer, vol. 151(3), pages 585-610, June.
    14. Christopher Sean Patrick Magee, 2010. "Would NAFTA have been Approved by the House of Representatives under President Bush? Presidents, Parties, and Trade Policy," Review of International Economics, Wiley Blackwell, vol. 18(2), pages 382-395, May.
    15. Apostoaie Constantin-Marius, 2016. "Relevant Determinants of the Political Parties’ Environmental Preference," Scientific Annals of Economics and Business, Sciendo, vol. 63(s1), pages 51-69, December.

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    More about this item

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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