A Spatial Voting Model Where Proportional Rule Leads to Two-Party Equilibria
n this paper we show that in a simple spatial model where the government is chosen under strict proportional rule, if the outcome function is a linear combination of parties' positions, with coefficient equal to their share of votes, essentially only a two-party equilibrium exists. The two parties taking a positive number of votes are the two extremist ones. Applications of this result include an extension of the well-known Alesina and Rosenthal model of divided government as well as a modified version of Besley and Coate's model of representative democracy. Different outcome functions are then analyzed.
|Date of creation:||01 Aug 2003|
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References listed on IDEAS
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- Timothy Besley & Stephen Coate, 1997. "An Economic Model of Representative Democracy," The Quarterly Journal of Economics, Oxford University Press, vol. 112(1), pages 85-114.
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- Alesina, Alberto & Rosenthal, Howard, 1996. "A Theory of Divided Government," Econometrica, Econometric Society, vol. 64(6), pages 1311-1341, November.
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- Austen-Smith, David & Banks, Jeffrey., 1987. "Elections, Coalitions, and Legislative Outcomes," Working Papers 643, California Institute of Technology, Division of the Humanities and Social Sciences. Full references (including those not matched with items on IDEAS)
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