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The Trade-Off between Reforms and Checks and Balances

Author

Listed:
  • Alvaro Forteza

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

  • Juan S. Pereyra

    (ECARES-Université libre de Bruxelles y F.R.S.-FNRS.)

Abstract

Strong checks and balances are key features of well performing democracies aimed at protecting citizens from government abuse of power. Nevertheless, some presidents have enjoyed strong and often explicit popular support when they undermined these controls. We present a formal model of the tradeo between control on the executive and delegation geared to enhancing our understanding of this phenomenon. We argue that voters may support the loosening of checks and balances, even when this allows rent extraction, if they are convinced that checks on the executive are blocking necessary reforms. We discuss several cases of strong presidents in Latin America who, alleging that radical reforms were necessary, obtained popular support that allowed them to loosen checks on the executive. Some of these presidents had a pro- and some an anti-market reform agenda so, as our model suggests, voters' willingness to remove checks and balances can emerge under both right- and left-wing executives.

Suggested Citation

  • Alvaro Forteza & Juan S. Pereyra, 2016. "The Trade-Off between Reforms and Checks and Balances," Documentos de Trabajo (working papers) 1016, Department of Economics - dECON.
  • Handle: RePEc:ude:wpaper:1016
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    File URL: https://hdl.handle.net/20.500.12008/8428
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    References listed on IDEAS

    as
    1. Philippe Aghion & Alberto Alesina & Francesco Trebbi, 2004. "Endogenous Political Institutions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(2), pages 565-611.
    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. Timothy Besley & Torsten Persson, 2011. "Pillars of Prosperity: The Political Economics of Development Clusters," Economics Books, Princeton University Press, edition 1, number 9624.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Political agency; Separation of powers; checks and balances.;
    All these keywords.

    JEL classification:

    • 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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