This paper studies the relation between political polarization and delegation of stabilization policy. There is asymmetric information about how the economy works: unlike voters, two political parties know the variance of an employment shock. Prior to an election, each party proposes a central...

The article investigates strategic, informative campaigning by two parties when politics concern redistribution. Voters are uncertain about whether parties favour special groups. Parties will target campaigns on groups where most votes are gained by informing about policies. In equilibrium,...