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Does political gridlock undermine checks and balances? A Lab Experiment

Author

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  • Alvaro Forteza

    (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República)

  • Irene Mussio
  • Juan Pereyra

    (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República)

Abstract

Strong checks on the executive are aimed at protecting citizens from the government abuse of power. However, citizens have supported the loosening of these checks in many countries and periods. We present a simple model where citizens may remove the controls on the executive even when this allows rent extraction. Citizens' decision is triggered by a political gridlock, that is, a situation where an executive proposing a reform is blocked by a conservative legislature. We test the main predictions of the model in a lab experiment. We nd that political gridlocks raise the probability that subjects in the experiment choose to weaken checks and balances. This result is partially consistent with the predictions of our model: subjects weaken controls in response to a political gridlock not only when the reform is beneficial, which is the predicted result, but also when it is harmful, which rejects our model prediction. Consistent with the model predictions, we find that the probability that subjects weakencontrols is lower when rents are high. Finally, we compare neutral and political framing - with rents identified as "costs" in the former and "corruption" in the latter-, and find that the probability that subjects choose to weaken checks and balances is lower in the political framing.

Suggested Citation

  • Alvaro Forteza & Irene Mussio & Juan Pereyra, 2019. "Does political gridlock undermine checks and balances? A Lab Experiment," Documentos de Trabajo (working papers) 0519, Department of Economics - dECON.
  • Handle: RePEc:ude:wpaper:0519
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    File URL: https://hdl.handle.net/20.500.12008/23418
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    References listed on IDEAS

    as
    1. Agranov, Marina & Palfrey, Thomas R., 2015. "Equilibrium tax rates and income redistribution: A laboratory study," Journal of Public Economics, Elsevier, vol. 130(C), pages 45-58.
    2. Daron Acemoglu & James A. Robinson & Ragnar Torvik, 2013. "Why Do Voters Dismantle Checks and Balances?," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 80(3), pages 845-875.
    3. John List & Sally Sadoff & Mathis Wagner, 2011. "So you want to run an experiment, now what? Some simple rules of thumb for optimal experimental design," Experimental Economics, Springer;Economic Science Association, vol. 14(4), pages 439-457, November.
    4. Alvaro Forteza & Juan S. Pereyra, 2019. "When do Voters Weaken Checks and Balances to Facilitate Economic Reform?," Economica, London School of Economics and Political Science, vol. 86(344), pages 775-800, October.
    5. Timothy Besley & Torsten Persson, 2011. "Pillars of Prosperity: The Political Economics of Development Clusters," Economics Books, Princeton University Press, edition 1, number 9624.
    6. Justin Esarey & Timothy C. Salmon & Charles Barrilleaux, 2012. "What Motivates Political Preferences? Self-Interest, Ideology, And Fairness In A Laboratory Democracy," Economic Inquiry, Western Economic Association International, vol. 50(3), pages 604-624, July.
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    Cited by:

    1. Hans Gersbach & Oriol Tejada & Julia Wagner, 2022. "Policy Reforms and the Amount of Checks & Balances," CER-ETH Economics working paper series 22/373, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.

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    More about this item

    Keywords

    Political agency; separation of powers; checks and balances; lab experiment.;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • E69 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Other
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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