Experimental Economics and Game Theory Seminar for October 26

Events, Seminars | October 12, 2018

Join us for the ICES Seminar in Experimental Economics and Game Theory of the Fall 2018 semester, featuring Alvaro Forteza.

Prof. Forteza, of Universidad de la Rep├║blica Uruguay, will discuss his paper Separation of Powers with Ideological Parties (Abstract). The talk will take place on Friday, October 26th, from 4:00 to 5:00pm in room 5183 of Vernon Smith Hall (formerly Metropolitan Building), Arlington campus.
Visit the Seminar schedule to access the paper and to learn more about upcoming speakers.

Abstract

Separation of powers with checks and balances (SP) is usually regarded as a key institution complementing elections in the control of elected officials. However, some analysts and many politicians also warn that excessive checks on the executive in the presence of polarization may lead to political inaction. We present a political agency model with ideological parties where citizens and politicians care about rents (the valence issue) and policy (a positional issue). We show that SP unambiguously raises voters welfare in highly-polarized non-competitive political environments, because it strengthens both discipline and selection without causing political gridlock (voters can grant the executive the legislative majorities needed to enact reforms). SP also raises voters welfare if elections are very effective at disciplining first period incumbents. But SP may reduce voters welfare if most rents go undetected and reform is not a first order issue.

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