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We examine debt-sensitive majority rules. According to such a rule, the higher a planned public debt, the higher the parliamentary majority required to approve it. In a two-period model we compare debt-sensitive majority rules with the simple majority rule when individuals differ regarding their...
Persistent link: https://www.econbiz.de/10008468567
Using a model of probabilistic voting, we analyse the impact of aid on the political equilibrium in the recipient country or region. We consider two kinds of politicians: the benevolent one is interested in promoting social welfare whereas the other one is clientelistic, his only goal being to...
Persistent link: https://www.econbiz.de/10005124076
good and a public input. The benchmark institution is a parliament, where all decisions are taken. Party entry …
Persistent link: https://www.econbiz.de/10005504348
The ability of groups to implement efficiency-enhancing institutions is emerging as a central theme of research in economics. This paper explores voting on a scheme of intergroup competition which facilitates cooperation in a social dilemma situation. Experimental results show that the...
Persistent link: https://www.econbiz.de/10011084279
While objective news coverage is vital to democracy, media bias can seriously distort collective decisions. This Paper develops a voting model where citizens are uncertain about the welfare effects induced by alternative policy options and derive information about those effects from the mass...
Persistent link: https://www.econbiz.de/10005789042
Across African countries, prevention policies are unrelated to the prevalence of HIV/AIDS and, even in countries in which they were successful, these policies are often unstable or reversed. To explain these two puzzles, we propose a simple political economy model that examines how prevention...
Persistent link: https://www.econbiz.de/10011084348