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Endogenous Majority Rules with Changing Preferences

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Abstract

This paper provides a new explanation why several US states have implemented supermajority requirements for tax increases. We model a dynamic and stochastic OLG economy where individual preferences depend on age and change over time in a systematic way. In this setting, we show that the first population of voters will choose a supermajority rule in order to influence the outcomes of future elections. We explore the robustness of the basic model and also find some empirical support for predictions derived from the model.

Suggested Citation

  • Mattias Polborn, 2000. "Endogenous Majority Rules with Changing Preferences," University of Western Ontario, Departmental Research Report Series 200012, University of Western Ontario, Department of Economics.
    • Handle: RePEc:uwo:uwowop:200012
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    File URL: https://ir.lib.uwo.ca/cgi/viewcontent.cgi?article=1356&context=economicsresrpt
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    1. Matthias Messner & Mattias K. Polborn, 2004. "Voting on Majority Rules," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 71(1), pages 115-132.
    2. Knight, Brian G., 2000. "Supermajority voting requirements for tax increases: evidence from the states," Journal of Public Economics, Elsevier, vol. 76(1), pages 41-67, April.
    3. Roger B. Myerson & Daniel Diermeier, 1999. "Bicameralism and Its Consequences for the Internal Organization of Legislatures," American Economic Review, American Economic Association, vol. 89(5), pages 1182-1196, December.
    4. Thomas F. Cooley & Jorge Soares, 1999. "A Positive Theory of Social Security Based on Reputation," Journal of Political Economy, University of Chicago Press, vol. 107(1), pages 135-160, February.
    5. Caplin, Andrew S & Nalebuff, Barry J, 1988. "On 64%-Majority Rule," Econometrica, Econometric Society, vol. 56(4), pages 787-814, July.
    6. Gradstein, Mark, 1999. "Optimal taxation and fiscal constitution," Journal of Public Economics, Elsevier, vol. 72(3), pages 471-485, June.
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    Cited by:

    1. Ian Ayres & Colin Rowat & Nasser Zakariya, 2004. "Optimal two stage committee voting rules," Game Theory and Information 0412006, University Library of Munich, Germany.
    2. Ian Ayres & Colin Rowat & Nasser Zakariya, 2004. "Optimal two stage committee voting rules," Game Theory and Information 0412006, University Library of Munich, Germany.
    3. Ian Ayres & Colin Rowat & Nasser Zakariya, 2011. "Optimal voting rules for two-member tenure committees," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 36(2), pages 323-354, February.

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