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concessions in favor of voters and interest groups. As any concession causes losses in utility for the party members, the parties … on different groups of voters and interest groups is derived. These concessions are taken as an indicator for the … in this paper helps to determine the political influence of voters and interest groups. The illustrations show that the …
Persistent link: https://www.econbiz.de/10010301406
concessions in favor of voters and interest groups. As any concession causes losses in utility for the party members, the parties … on different groups of voters and interest groups is derived. These concessions are taken as an indicator for the … in this paper helps to determine the political influence of voters and interest groups. The illustrations show that the …
Persistent link: https://www.econbiz.de/10010509849
This paper examines and tests the existence of political budget cycles in Papua New Guinea during the period 1988–2004. Several factors point to the existence of political budget cycles in Papua New Guinea. The paper provides an overview of the political business cycle literature, and...
Persistent link: https://www.econbiz.de/10011245020
I study the link between ethnic diversity, democracy, and corruption. In a static model, I show that contrary to conventional wisdom, corruption might emerge as a negative externality of democracy. This occurs through ethnicity, which appears as a rent-extracting technology in a democratic...
Persistent link: https://www.econbiz.de/10005248127
outcomes. We study contracts contingent upon individual votes, policy outcomes, and/or vote shares. Voters either care about … coincides with what voters care about. Vote buying becomes extremely costly, or even impossible, when there is no such …
Persistent link: https://www.econbiz.de/10005248248
In response to high and chronic inflation, countries have adopted different stabilization policies. However, the extent to which these stabilization programs were designed for political motives is not clear. Since exchange-rate-based stabilizations (ERBS) create an initial consumption boom...
Persistent link: https://www.econbiz.de/10005263919
Viewing fiscal policies as the outcome of democratically resolved conflicts of households over public goods and taxes, the “economic model of politics” proposes a public choice approach, which does not rely on social welfare functions. With it, a country’s overall budget can be derived...
Persistent link: https://www.econbiz.de/10005264039
target geographically, and transfers, which are easier to target across social groups. Voters have an incentive to elect …
Persistent link: https://www.econbiz.de/10005264182
This paper discusses the role of fiscal institutions, including budget rules and non-partisan agencies, in enhancing fiscal discipline. A dynamic model of fiscal policy shows that optimal institutions lack credibility unless the costs to bypass them are sufficiently high. In our model, a...
Persistent link: https://www.econbiz.de/10005825631
This paper assesses the presence of opportunistic electoral budget cycles in Papua New Guinea. Using quarterly time series data, a clear pattern emerges of pre-election manipulations of fiscal policy by incumbent governments, mainly in the form of increased development spending and overall...
Persistent link: https://www.econbiz.de/10005826270