IDEAS home Printed from https://ideas.repec.org/p/fer/wpaper/109.html
   My bibliography  Save this paper

Electoral Institutions and Intraparty Cohesion

Author

Listed:
  • Matakos, Konstantinos
  • Savolainen, Riikka
  • Troumpounis, Orestis
  • Tukiainen, Janne
  • Xefteris, Dimitrios

Abstract

We study parties' optimal ideological cohesion across electoral rules, when the following trade-off is present: A more heterogenous set of candidates is electorally appealing (catch-all party), yet, it serves policy-related goals less efficiently. When the rule becomes more disproportional, thus inducing a more favorable seat allocation for the winner, the first effect is amplified, incentivizing parties to be less cohesive. We provide empirical support using a unique data-set that records candidates' ideological positions in Finnish municipal elections. Exploiting an exogenous change of electoral rule disproportionality at different population thresholds, we identify the causal effect of electoral rules on parties' cohesion. This version (March 4, 2019) replaces the July 12, 2018 version.

Suggested Citation

  • Matakos, Konstantinos & Savolainen, Riikka & Troumpounis, Orestis & Tukiainen, Janne & Xefteris, Dimitrios, 2018. "Electoral Institutions and Intraparty Cohesion," Working Papers 109, VATT Institute for Economic Research.
  • Handle: RePEc:fer:wpaper:109
    as

    Download full text from publisher

    File URL: https://www.doria.fi/handle/10024/159572
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Fernanda Brollo & Tommaso Nannicini & Roberto Perotti & Guido Tabellini, 2013. "The Political Resource Curse," American Economic Review, American Economic Association, vol. 103(5), pages 1759-1796, August.
    2. Jasjeet S. Sekhon & Rocío Titiunik, 2017. "On Interpreting the Regression Discontinuity Design as a Local Experiment," Advances in Econometrics, in: Regression Discontinuity Designs, volume 38, pages 1-28, Emerald Group Publishing Limited.
    3. Timothy Besley & Olle Folke & Torsten Persson & Johanna Rickne, 2017. "Gender Quotas and the Crisis of the Mediocre Man: Theory and Evidence from Sweden," American Economic Review, American Economic Association, vol. 107(8), pages 2204-2242, August.
    4. Levine, David, 1989. "Cohesiveness, Productivity, and Wage Dispersion," Institute for Research on Labor and Employment, Working Paper Series qt8kd4d0p4, Institute of Industrial Relations, UC Berkeley.
    5. Dario Debowicz & Alejandro Saporiti & Yizhi Wang, 2016. "Redistributive Politics, Power Sharing and Fairness," LIS Working papers 681, LIS Cross-National Data Center in Luxembourg.
    6. Sanz, Carlos, 2017. "The Effect of Electoral Systems on Voter Turnout: Evidence from a Natural Experiment," Political Science Research and Methods, Cambridge University Press, vol. 5(4), pages 689-710, October.
    7. Konstantinos Matakos & Orestis Troumpounis & Dimitrios Xefteris, 2016. "Electoral Rule Disproportionality and Platform Polarization," American Journal of Political Science, John Wiley & Sons, vol. 60(4), pages 1026-1043, October.
    8. Lyytikäinen, Teemu & Tukiainen, Janne, 2019. "Are voters rational?," European Journal of Political Economy, Elsevier, vol. 59(C), pages 230-242.
    9. Stefano Gagliarducci & Tommaso Nannicini, 2013. "Do Better Paid Politicians Perform Better? Disentangling Incentives From Selection," Journal of the European Economic Association, European Economic Association, vol. 11(2), pages 369-398, April.
    10. Peter Egger & Marko Koethenbuerger, 2010. "Government Spending and Legislative Organization: Quasi-experimental Evidence from Germany," American Economic Journal: Applied Economics, American Economic Association, vol. 2(4), pages 200-212, October.
    11. Torsten Persson & Guido Tabellini & Francesco Trebbi, 2003. "Electoral Rules and Corruption," Journal of the European Economic Association, MIT Press, vol. 1(4), pages 958-989, June.
    12. Bernard Caillaud & Jean Tirole, 2002. "Parties as Political Intermediaries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(4), pages 1453-1489.
    13. Ferraz, Claudio & Finan, Frederico S., 2008. "Motivating Politicians: The Impacts of Monetary Incentives on Quality and Performance," IZA Discussion Papers 3411, Institute of Labor Economics (IZA).
    14. David S. Lee & Thomas Lemieux, 2010. "Regression Discontinuity Designs in Economics," Journal of Economic Literature, American Economic Association, vol. 48(2), pages 281-355, June.
    15. Nicola Persico & Alessandro Lizzeri, 2001. "The Provision of Public Goods under Alternative Electoral Incentives," American Economic Review, American Economic Association, vol. 91(1), pages 225-239, March.
    16. Aghion, Philippe & Tirole, Jean, 1997. "Formal and Real Authority in Organizations," Journal of Political Economy, University of Chicago Press, vol. 105(1), pages 1-29, February.
    17. Grossman, Sanford J & Hart, Oliver D, 1986. "The Costs and Benefits of Ownership: A Theory of Vertical and Lateral Integration," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 691-719, August.
    18. Persson, Torsten & Roland, Gerard & Tabellini, Guido, 2007. "Electoral Rules and Government Spending in Parliamentary Democracies," Quarterly Journal of Political Science, now publishers, vol. 2(2), pages 155-188, May.
    19. Pettersson-Lidbom, Per, 2012. "Does the size of the legislature affect the size of government? Evidence from two natural experiments," Journal of Public Economics, Elsevier, vol. 96(3), pages 269-278.
    20. Vincenzo Galasso & Tommaso Nannicini, 2017. "Political selection under alternative electoral rules," Public Choice, Springer, vol. 171(3), pages 257-281, June.
    21. Helios Herrera & Aniol Llorente-Saguer & Joseph C McMurray, 2019. "The Marginal Voter's Curse," The Economic Journal, Royal Economic Society, vol. 129(624), pages 3137-3153.
    22. Gian Maria Milesi-Ferretti & Roberto Perotti & Massimo Rostagno, 2002. "Electoral Systems and Public Spending," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(2), pages 609-657.
    23. Alejandro Saporiti, 2014. "Power sharing and electoral equilibrium," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 55(3), pages 705-729, April.
    24. Ari Hyytinen & Jaakko Meriläinen & Tuukka Saarimaa & Otto Toivanen & Janne Tukiainen, 2018. "When does regression discontinuity design work? Evidence from random election outcomes," Quantitative Economics, Econometric Society, vol. 9(2), pages 1019-1051, July.
    25. McCrary, Justin, 2008. "Manipulation of the running variable in the regression discontinuity design: A density test," Journal of Econometrics, Elsevier, vol. 142(2), pages 698-714, February.
    26. Andrew C. Eggers & Ronny Freier & Veronica Grembi & Tommaso Nannicini, 2018. "Regression Discontinuity Designs Based on Population Thresholds: Pitfalls and Solutions," American Journal of Political Science, John Wiley & Sons, vol. 62(1), pages 210-229, January.
    27. Moshe Koppel & Abraham Diskin, 2009. "Measuring disproportionality, volatility and malapportionment: axiomatization and solutions," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 33(2), pages 281-286, August.
    28. Hyytinen, Ari & Meriläinen, Jaakko & Saarimaa, Tuukka & Toivanen, Otto & Tukiainen, Janne, 2015. "Does Regression Discontinuity Design Work? Evidence from Random Election Outcomes," Working Papers 59, VATT Institute for Economic Research.
    29. Severin Borenstein, 1991. "The Dominant-Firm Advantage in Multiproduct Industries: Evidence from the U. S. Airlines," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(4), pages 1237-1266.
    30. repec:ner:ucllon:http://discovery.ucl.ac.uk/17678/ is not listed on IDEAS
    31. Massimo Bordignon & Tommaso Nannicini & Guido Tabellini, 2016. "Moderating Political Extremism: Single Round versus Runoff Elections under Plurality Rule," American Economic Review, American Economic Association, vol. 106(8), pages 2349-2370, August.
    32. Fujiwara, Thomas, 2011. "A Regression Discontinuity Test of Strategic Voting and Duverger's Law," Quarterly Journal of Political Science, now publishers, vol. 6(3–4), pages 197-233, November.
    33. M. Iaryczower, & Andrea Mattozzi, 2013. "On the Nature of Competition in Alternative Electoral Systems," Levine's Bibliography 786969000000001681, UCLA Department of Economics.
    34. Ernesto Dal Bó & Frederico Finan & Olle Folke & Torsten Persson & Johanna Rickne, 2017. "Who Becomes A Politician?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 132(4), pages 1877-1914.
    35. Diermeier, Daniel & Feddersen, Timothy J., 1998. "Cohesion in Legislatures and the Vote of Confidence Procedure," American Political Science Review, Cambridge University Press, vol. 92(3), pages 611-621, September.
    36. Torsten Persson & Guido Tabellini, 2002. "Political Economics: Explaining Economic Policy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262661314, April.
    37. Theil, Henri, 1969. "The Desired Political Entropy," American Political Science Review, Cambridge University Press, vol. 63(2), pages 521-525, June.
    38. Meriläinen, Jaakko & Tukiainen, Janne, 2016. "Primary Effect in Open-List Elections," Working Papers 79, VATT Institute for Economic Research.
    39. Levine, David I., 1991. "Cohesiveness, productivity, and wage dispersion," Journal of Economic Behavior & Organization, Elsevier, vol. 15(2), pages 237-255, March.
    40. Benoit, Kenneth, 2000. "Which Electoral Formula Is the Most Proportional? A New Look with New Evidence," Political Analysis, Cambridge University Press, vol. 8(4), pages 381-388, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Britto, Diogo G.C. & Fiorin, Stefano, 2020. "Corruption and legislature size: Evidence from Brazil," European Journal of Political Economy, Elsevier, vol. 65(C).
    2. Jon H. Fiva & Oda Nedregård & Henning Øien, 2021. "Polarization in Parliamentary Speech," CESifo Working Paper Series 8818, CESifo.
    3. Tukiainen, Janne & Takalo, Tuomas & Hulkkonen, Topi, 2019. "Relative age effects in political selection," European Journal of Political Economy, Elsevier, vol. 58(C), pages 50-63.
    4. Sahuguet, Nicolas & Crutzen, Benoît SY & Hideo, Konishi, 2021. "The Best at the Top? Candidate Ranking Strategies under Closed List Proportional Representation," CEPR Discussion Papers 16057, C.E.P.R. Discussion Papers.
    5. De Santo, Alessia & Le Maux, Benoît, 2023. "On the optimal size of legislatures: An illustrated literature review," European Journal of Political Economy, Elsevier, vol. 77(C).
    6. Konstantinos Matakos & Riikka Savolainen & Janne Tukiainen, 2020. "Refugee Migration and the Politics of Redistribution: Do Supply and Demand Meet?," Discussion Papers 132, Aboa Centre for Economics.
    7. Rafael Hortala-Vallve & Jaakko Meriläinen & Janne Tukiainen, 2021. "Pre-Electoral Coalitions: Insights into the Creation of Political Parties," Discussion Papers 143, Aboa Centre for Economics.
    8. Royce Carroll & Monika Nalepa, 2020. "The personal vote and party cohesion: Modeling the effects of electoral rules on intraparty politics," Journal of Theoretical Politics, , vol. 32(1), pages 36-69, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Britto, Diogo G.C. & Fiorin, Stefano, 2020. "Corruption and legislature size: Evidence from Brazil," European Journal of Political Economy, Elsevier, vol. 65(C).
    2. Kantorowicz, Jarosław, 2017. "Electoral systems and fiscal policy outcomes: Evidence from Poland," European Journal of Political Economy, Elsevier, vol. 47(C), pages 36-60.
    3. Sanz, Carlos, 2017. "The Effect of Electoral Systems on Voter Turnout: Evidence from a Natural Experiment," Political Science Research and Methods, Cambridge University Press, vol. 5(4), pages 689-710, October.
    4. Bol, Damien & Matakos, Konstantinos & Troumpounis, Orestis & Xefteris, Dimitrios, 2019. "Electoral rules, strategic entry and polarization," Journal of Public Economics, Elsevier, vol. 178(C).
    5. Sanz, Carlos, 2020. "Direct democracy and government size: evidence from Spain," Political Science Research and Methods, Cambridge University Press, vol. 8(4), pages 630-645, October.
    6. De Witte, Kristof & Geys, Benny & Schönhage, Nanna Lauritz, 2018. "Strategic public policy around population thresholds," Journal of Urban Economics, Elsevier, vol. 106(C), pages 46-58.
    7. Braendle, Thomas, 2013. "Do Institutions Affect Citizens' Selection into Politics?," Working papers 2013/04, Faculty of Business and Economics - University of Basel.
    8. Anna Harvey, 2020. "Applying regression discontinuity designs to American political development," Public Choice, Springer, vol. 185(3), pages 377-399, December.
    9. Crutzen, Benoît S.Y. & Sahuguet, Nicolas, 2023. "Comparative politics with intraparty candidate selection," European Journal of Political Economy, Elsevier, vol. 79(C).
    10. Kristof De Witte & Benny Geys, 2015. "Strategic Housing Policy, Migration and Sorting around Population Thresholds," CESifo Working Paper Series 5639, CESifo.
    11. Nicolas Gavoille, 2021. "Pay for politicians and campaign spending: evidence from the French municipal elections," Public Choice, Springer, vol. 188(3), pages 455-477, September.
    12. Emanuele Bracco & Alberto Brugnoli, 2012. "Runoff vs. plurality," Working Papers 23767067, Lancaster University Management School, Economics Department.
    13. Cipullo, Davide, 2018. "Runoff vs. Plurality: Does It Matter for Expenditures? Evidence from Italy," Working Paper Series 2018:13, Uppsala University, Department of Economics.
    14. Frank, Marco & Stadelmann, David, 2021. "More federal legislators lead to more resources for their constituencies: Evidence from exogenous differences in seat allocations," Journal of Comparative Economics, Elsevier, vol. 49(1), pages 230-243.
    15. Florian Ade & Ronny Freier, 2011. "When Can We Trust Population Thresholds in Regression Discontinuity Designs?," Discussion Papers of DIW Berlin 1136, DIW Berlin, German Institute for Economic Research.
    16. Susana Peralta & João Pereira dos Santos, 2020. "Who seeks reelection: local fiscal restraints and political selection," Public Choice, Springer, vol. 184(1), pages 105-134, July.
    17. Lyytikäinen, Teemu & Tukiainen, Janne, 2019. "Are voters rational?," European Journal of Political Economy, Elsevier, vol. 59(C), pages 230-242.
    18. Vincenzo Galasso & Tommaso Nannicini, 2017. "Political selection under alternative electoral rules," Public Choice, Springer, vol. 171(3), pages 257-281, June.
    19. Berg, Heléne, 2018. "Is It Worth It? On the Returns to Holding Political Office," Research Papers in Economics 2018:5, Stockholm University, Department of Economics.
    20. Heléne Berg, 2018. "Is It Worth It? On the Returns to Holding Political Office," CESifo Working Paper Series 7406, CESifo.

    More about this item

    Keywords

    electoral systems; ideological heterogeneity; party cohesion; policymotivated parties; proportional representation; regression discontinuity design; Local public finance and provision of public services; C21; C72; D02; D72; Kunnat ja hyvinvointialueet;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fer:wpaper:109. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Anita Niskanen (email available below). General contact details of provider: https://edirc.repec.org/data/vatttfi.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.