Reelection through Division
We provide a positive analysis of effort allocation by a politician facing reelection when voters are uncertain about the politician's preferences on a divisive issue. We then use this framework to derive normative conclusions on the desirability of transparency, term limits, and independence of executive power. There is a pervasive incentive to ``posture'' by over-providing effort to pursue the divisive policy, even if all voters would strictly prefer to have a consensus policy implemented. As such, the desire of politicians to convince voters that their preferences are aligned with the majority can lead them to choose strictly pareto dominated effort allocations in the first period. Transparency over the politicians' effort choices can either mitigate or re-enforce the distortions depending on the strength of politicians' office motivation and the efficiency of institutions. When re-election concerns are paramount, and executive institutions are strong, transparency about effort choices can be bad for both incentivizing politicians and for sorting.
|Date of creation:||2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.EconomicDynamics.org/society.htmEmail:
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Prat, Andrea & Strömberg, David, 2011. "The Political Economy of Mass Media," CEPR Discussion Papers 8246, C.E.P.R. Discussion Papers.
- Konstantin Sonin & Georgy Egorov & Daron Acemoglu, 2010.
"A Political Theory of Populism,"
2010 Meeting Papers
1246, Society for Economic Dynamics.
- Daron Acemoglu & Georgy Egorov & Konstantin Sonin, 2011. "A Political Theory of Populism," NBER Working Papers 17306, National Bureau of Economic Research, Inc.
- Daron Acemoglu & Georgy Egorov & Konstantin Sonin, 2013. "A Political Theory of Populism," Levine's Working Paper Archive 786969000000000654, David K. Levine.
- Daron Acemoglu & Georgy Egorov & Konstantin Sonin, 2011. "A Political Theory of Populism," Levine's Working Paper Archive 786969000000000281, David K. Levine.
- Daron Acemoglu & Georgy Egorov & Konstantin Sonin, 2011. "A Political Theory of Populism," Levine's Working Paper Archive 661465000000001179, David K. Levine.
- Brendan Daley & Erik Snowberg, 2011. "Even if it is not Bribery: The Case for Campaign Finance Reform," Journal of Law, Economics and Organization, Oxford University Press, vol. 27(2), pages 324-349.
- Stephen Morris, 2001.
Journal of Political Economy,
University of Chicago Press, vol. 109(2), pages 231-265, April.
- Bengt Holmstrom, 1979.
"Moral Hazard and Observability,"
Bell Journal of Economics,
The RAND Corporation, vol. 10(1), pages 74-91, Spring.
When requesting a correction, please mention this item's handle: RePEc:red:sed012:111. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christian Zimmermann)
If references are entirely missing, you can add them using this form.