WWW.DISSERTATION.XLIBX.INFO FREE ELECTRONIC LIBRARY - Dissertations, online materials

<< HOME
CONTACTS

Pages:     | 1 |   ...   | 3 | 4 || 6 |

# «The Politician and the Judge: Accountability in Government Jean Tirole∗ Eric Maskin First version, April 2001 Revised, March 2004 Abstract We build ...»

-- [ Page 5 ] --

Now consider a nonideological type (N, b) oﬃcial. If she chooses b, her payoﬀ, from the above claim, is at least δq. If instead she chooses a, her payoﬀ is at most 1+δ (1 − q). But, by hypothesis, the former exceeds the latter. Hence, in equilibrium, type (N, b) cannot choose b, and the same for (C, b) (since (C, b)’s preference for b is even stronger). Similarly, types (N, a) and (C, a) choose a in equilibrium, establishing that any equilibrium must be FLP.

Suppose that a has been chosen in the ﬁrst period. In equilibrium, nonideological types (C, a) and (N, a) and ideological types (C, a) and (N, b) choose a. Hence, if there has been no feedback, the probability that the oﬃcial is congruent conditional on the choice of a is strictly greater than π, and so she will be reelected. Similarly, she will not be reelected if she has chosen b and there is no feedback 1+δ Proposition A3 When qδ 1, one limit of PBEs as ρ → 0 is an FLP equilibrium 2 in which, if there is no feedback, the electorate randomizes over reelection. The only other possible limit (if δ (1 − 2q) ≥ 1) is a full pandering equilibrium.

Fix ρ 0. From the proof of Proposition A2, in any equilibrium, if the Proof.

electorate obtains feedback about an oﬃcial’s ﬁrst-period choice, then the oﬃcial will be reelected if and only if the decision was optimal. Suppose that there exists an equilibrium in which nonideological type (N, a) chooses b with positive probability. Then, (N, b) and (C, b) both choose b with probability 1 (since for δq 1 their preference for b is even 33 stronger than that of (N, a)). Hence, without feedback (and in view of the ideological types (N, a) and (C, b) who choose b), the probability that an oﬃcial is noncongruent conditional on b having been chosen is strictly greater than 1 − π, and so an oﬃcial who chooses b will not be reelected. This means that (N, a)’s payoﬀ from choosing b is 1. By contrast, if she chooses a, she will be reelected (whether or not there is feedback), and so her payoﬀ will be δ, which, by hypothesis, is greater, a contradiction. We conclude that (N, a) must choose a with probability 1 in equilibrium, which implies that the same is true of (C, a).

Suppose that there exists an equilibrium in which nonideological type (N, b) chooses b with probability 1. In that case, the probability without feedback that an oﬃcial is noncongruent conditional on her having chosen b is strictly greater than 1 − π (thanks to the fact that, in the absence of feedback, the probability that an ideological oﬃcial is noncongruent conditional on her having chosen b is strictly greater than 1 − π), and so (N, b)’s payoﬀ from b is δq. By contrast, if she chooses a, she will be reelected if there is no feedback, and so her payoﬀ will be 1 + δ (1 − q), which, by hypothesis, is greater, a contradiction. We conclude that, in any equilibrium, (N, b) must choose a with positive probability.

Consider an equilibrium in which nonideological type (N, b) randomizes between a and b. Then δq + δ (1 − q) β = 1 + δ (1 − q) α, (1) where the left- and right-hand sides of (1) correspond to the payoﬀs from b and a respectively, and β and α are the probabilities of reelection in the absence of feedback when, respectively, b and a have been chosen. From (1) and hypothesis, we obtain

–  –  –

That is, when there is no feedback, the electorate must randomize between reelecting and not reelecting, either when the oﬃcial has chosen a, or when she has chosen b (or in both cases). This implies that the probability of an oﬃcial’s being congruent conditional on a 34 having been chosen is π. Now, the nonideological types other than (N, b) who choose a in equilibrium are (C, a) and (N, a) and the ideological types are (C, a) and (N, b). Hence, the probability that (N, b) chooses a must be only big enough to oﬀset the eﬀect of the ideological oﬃcials. Thus, as ρ → 0, equilibrium converges to one in which (N, b) (and hence (C, b)) plays b with probability 1 – i.e., an FLP equilibrium – and the electorate randomizes over reelection when there is no signal, as the Proposition claims.

The only remaining equilibrium possibility is that nonideological type (N, b) chooses a with probability 1. Now, if (C, b) does so too, then we are done, because this will be a pure pandering equilibrium. Hence, assume that (C, b) chooses b with positive probability.

If this probability is high enough to outweigh the eﬀect of the ideological type (N, a), who chooses b, then, without feedback, an oﬃcial who chooses b will be reelected, implying that (N, b)’s payoﬀ from b is δ, whereas that from a is only 1, a contradiction of the fact that (N, b) chooses a. We conclude that the probability that (C, b) chooses b must be suﬃciently small and converge to 0 as ρ → 0. Thus, in the limit, we obtain a full pandering equilibrium, as claimed.

Proposition A4 When δ 1 and 0 qδ 1, one limit of PBEs as ρ → 0 is a PP equilibrium (which is also a Markov equilibrium). The only other possible limit (if δ (1 − 2q) ≥ 1) is a full pandering equilibrium.

Fix ρ 0. Again, it can be shown that, in any equilibrium, an oﬃcial Proof.

is reelected when there is feedback if and only her ﬁrst-period decision was optimal.

Suppose that there exists an equilibrium in which nonideological type (N, a) chooses b with probability 1. Then the probability that an oﬃcial is noncongruent conditional on her having chosen b is greater than 1 − π, and so, without feedback, an oﬃcial choosing b will not be reelected. Thus, (N, a)’s payoﬀ from b is 1, whereas her payoﬀ from a is δ, a contradiction, since the latter is bigger. We conclude that nonideological type (N, a) must choose a with positive probability in equilibrium. If she also chooses b with positive probability, then, since 0 qδ 1 implies that ∆ (C, a) ∆ (N, b) ∆ (N, a) ∆ (C, b), type ∆ (C, b) will choose b and types (C, a) and (N, b) will choose a : the equilibrium is 35 P P. Notice that because all four types have diﬀerent preferences, this is also a Markov equilibrium.

Assume, therefore, that (N, a) chooses a with probability 1. Now if nonideological type (C, b) chooses b with high enough probability to outweigh the eﬀect of the congruent ideological types (C, b) and (N, a), who choose b, then, without feedback, an oﬃcial who chooses b will be reelected, implying that (N, a)’s payoﬀ from b is 1 + (1 − q) δ, whereas that from a is δq. But, by hypothesis, the former is bigger than the latter, a contradiction.

We conclude that nonideological type (C, b) can choose b with probability at most on the order of ρ. But as ρ → 0, (C, b)’s strategy converges to one in which a is chosen with probability 1, implying that the limiting equilibrium is full pandering.

36 References Avery, Christopher and Meyer, Margaret.“Designing Hiring and Promotion Procedures When Evaluators are Biased,” mimeo, KSG Harvard and Oxford, 2000.

Barro, Robert. “The Control of Politicians: An Economic Model,” Public Choice, 1973, (14), pp. 19—42.

Beard, Charles. An Economic Interpretation of the Constitution of the United States, 1913, NY: MacMillan (1952 edition).

______. The Economic Basis of Politics and Related Writings by Charles A. Beard, NY: Vintage Books, 1957.

Besley, Timothy and Coate, Stephen. “Elected versus Appointed Regulators: Theory and Evidence.” Journal of the European Economic Association, 2000a.

______. “Non-Majoritarian Policy Outcomes and the Role of Citizens’ Initiatives.” Mimeo, LSE., 2000b.

Besley, Timothy and Case, Ann. “Political Institutions and Policy Choices: Evidence from the United States.” Journal of Economic Literature, 2003, (41), pp. 7-73.

Besley, Timothy and Payne, Abigail. “Judicial Accountability and Economic Policy Outcomes: Evidence from Employment Discrimination Charges.” Mimeo, LSS and McMaster University, 2003.

Bohn, Henning and Inman, Robert. “Balanced Budget Rules and Public Deﬁcits:

Evidence from the U.S. States,” National Bureau of Economic Research. Working Paper No. 5533, 1996.

Butler, David and Ranney, Austin. Referendums around the World: The Growing Use of Direct Democracy. American Enterprise Institute, 1994.

–  –  –

Canes-Wrone, Brandice; Herron, Michael and Shotts, Kenneth. “Leadership and Pandering: A Theory of Executive Policy making.” American Journal of Political Science, 2001, (45), pp. 532—550.

Carrillo, Juan and Mariotti,Thomas. “Electoral Competition and Politicians Turnover.” European Economic Review, 2001, 45, pp.1—26.

Cho, In-Koo and Kreps, David M. “Signaling Games and Stable Equilibria.” Quarterly Journal of Economics, 1987, (102), pp. 179—221.

Dahl, Robert. A Preface to Democratic Theory. Chicago: University of Chicago Press, 1956.

Dewatripont, Mathias and Maskin, Eric S. “Credit and Eﬃciency in Centralized and Decentralized Economies.” Review of Economic Studies, 1995, pp. 541-555.

Dewatripont, Mathias and Tirole, Jean. “Advocates.” Journal of Political Economy, 1999, 107(1), pp. 1—39.

Faure-Grimaud, Antoine and Gromb, Denis. “Public Trading and Private Incentives.” Working Paper, FMG, 2000.

Faure-Grimaud, Antoine and Martimort, David. “Regulatory Inertia.” Mimeo, LSE and IDEI, 2000.

Ferejohn, John. “Incumbent Performance and Electoral Control.” Public Choice, 1986, (50), pp. 5—26.

Fudenberg, Drew and Tirole, Jean. “A Theory of Income and Dividend Smoothing.” Journal of Political Economy, 1995, (103), pp. 75—93.

Hanssen, Andrew. “The Eﬀect of Judicial Institutions on Uncertainty and the Rate of Litigation: The Election versus Appointment of State Judges,” Journal of Legal Studies, 1999, (28), pp. 205-32.

Hanssen, Andrew. “Independent Courts and Administrative Agencies: An Empirical Analysis of the States.” Journal of Law, Economics, and Organization, 2000, (16), pp.

38 534-71.

Laﬀont, Jean-Jacques. Incentives and Political Economy, Clarendon Lectures: Oxford University Press, 2000.

Laﬀont, Jean-Jacques and Martimort, David. “Separation of Regulators against Collusive Behavior.” Rand Journal of Economics,1999, 30 (2), pp. 232—262.

Laﬀont, Jean-Jacques, and Tirole, Jean.“The Politics of Government Decision Making: A Theory of Regulatory Capture,” Quarterly Journal of Economics, 1991, (106), pp. 1089-1127.

Levy, Gilat. “Legal Precedent and Appellate Review with Careerist Judges,” Mimeo, London School of Economics, 2000.

Madison, James. 1787. “Federalist 10,” in The Federalist Papers, A. Hamilton, J.

Madison, and J.Jay, eds., New York: Penguin, 1981.

Manin, Bernard. The Principles of Representative Government, Cambridge: Cambridge University Press, 1997.

Matsusaka, John. “Economics of Direct Legislation,” Quarterly Journal of Economics, 1992, (107), pp. 541—71.

McCubbins, Matthew D. ; Noll, Roger G. and Weingast, Barry R. “Administrative Procedures as Instruments of Political Control,” Journal of Law, Economics, and Organization,1987, (3), pp. 243—277.

Morris, Stephen. “Political Correctness,” Journal of Political Economy, 2001, (109), pp. 231—265.

Persson, Torsten and Tabellini, Guido. Political Economics: Explaining Economic Policy. Cambridge: MIT Press, 2000.

Persson, Torsten ; Roland, Gerard and Tabellini, Guido.“Separation of Powers and Political Accountability,” Quarterly Journal of Economics, 1997, (112), pp. 1163— 1202.

39 Rogoﬀ, Kenneth. “The Optimal Degree of Commitment to an Intermediate Monetary Target,” Quarterly Journal of Economics, 1985, (100), pp. 1169—1190.

Schumpeter, Joseph. (1942) Capitalism, Socialism and Democracy, New York: Harper, 3rd edition, New York: Harper Torchbooks,1962.

Siéyès, Abbé. “Dire de l’Abbé Siéyès sur la Question du Véto Royal”, Versailles: Baudoin, Imprimeur de l’Assemblé e Nationale, 1789.

Stein, Jeremy. “Eﬃcient Capital Markets, Ineﬃcient Firms: A Model of Myopic Corporate Behavior,” Quarterly Journal of Economics, 1989, (104), pp. 655-669.

Strömberg, David. “Radio’s Impact on Public Spending.” Mimeo, IIES, Stockholm University, 2000.

“Long-Term Contracts, Short-Term Investment and von Thadden, Ernst-Ludwig.

Monitoring,” Review of Economic Studies, 1995, (62), pp. 557—575.

–  –  –

Footnotes *Maskin: Institute for Advanced Study, Einstein Drive, Princeton, NJ 08540, U.S.A.

and Princeton University; Tirole: Institut d’Economie Industrielle, Manufacture des Tabacs, Bureau MF529-Bat. F, 21 allees de Brienne, 31000 Toulouse, France and GREMAQ (UMR 5603 CNRS), Toulouse, CERAS (URA 2036 CNRS), Paris, and MIT. We are grateful to the participants of the CEPR-ESF conference on “The Institutions of Restraint” (Toulouse, June 24-28, 2000), the Annual Meeting of the European Public Choice Society (Paris, April 18-22, 2001), the Southeastern International Trade and Economic Theory Conference (Miami, November 16-18, 2001), the Canadian Economic Theory Conference (Toronto, May 24-26, 2002), the Modeling the Constitution Conference (Pasadena, May 16-17, 2003), and many seminars for their observations on oral presentations, and to Tim Besley, Mathias Dewatripont, John Matsusaka, Stephen Morris, Ian Shapiro and two anonymous referees for helpful comments on previous drafts.

1. Ballot referendums constitute the largest class of decisions made through direct democracy, but even in the U.S. and Switzerland, where they are especially popular, they touch on only a small fraction of public policy issues.

2. See, however, the sympathetic fourteen-page survey on direct democracy in The Economist (December 21, 1996). Many have argued that once the digital divide is eliminated, e-voting will enhance the appeal of referendums.

3. The view that governments are better informed than citizens is emphasized in James Madison (1787) and Abbé Siéyès (1789) (see also the introduction to Bernard Manin, 1997).

4. Joseph Schumpeter (1942) puts it in characteristically acerbic fashion: “The average citizen expends less disciplined eﬀort on mastering a political problem than he expends on a game of bridge.” 41

5. Summarizing the case against direct democracy, David Butler and Austin Ranney (1994) write:

Pages:     | 1 |   ...   | 3 | 4 || 6 |

Similar works:

«8/20/2014 4:59 PM Sexually Transmitted Diseases Treatment Guidelines, 2014 This information is distributed solely for the purpose of pre-dissemination peer review under applicable information quality guidelines. It has not been formally disseminated by the Centers for Disease Control and Prevention. It does not represent and should not be construed to represent any agency determination or policy. Contents Introduction Methods Clinical Prevention Guidance STD/HIV Prevention Counseling Prevention...»

«KELLY M. BROWN, RONALD CUMMINGS, JANUSZ R. MROZEK, & PETER TERREBONNE* Scrap Tire Disposal: Three Principles for Policy Choice ABSTRACT Scrap tire disposal presents a challenging regulatoryproblem for many states. Properdisposalof scraptires,either through recycling or legal landfill disposal, is difficult and costly. In an effort to address this issue, many states have chosen to develop scrap tire policies, often funded by specialfees on the sale of new tires. These fees typically are used to...»

«OUP UNCORRECTED PROOF – FIRSTPROOFS, Sat Mar 09 2013, NEWGEN 12 Charitable Interpretations and the Political Domestication of Spinoza, or, Benedict in the Land of the Secular Imagination Yitzhak Y. Melamed A fool hath no delight in understanding, but that his heart may discover itself. Proverbs, XVIII 2 1. Introduction In a beautiful recent essay, the philosopher Walter Sinnott-Armstrong explains the reasons for his departure from evangelical Christianity, the religious culture in which he...»

«OUR FIRST OLD AGE PENSION 1915-1927 Summary Canada was a changed nation by the end of the First World War (1914-1918). War-time demand led to more industrial production. The urban labour force grew, so that by the 1920s most people lived in the city rather than the country. New factories favoured the young, and jobs that were traditionally done by older people began to disappear. Seniors could look forward to living longer, but many lived in severe poverty. Workers who supported aging parents...»

«Politicization of Intelligence Reporting: Evidence from the Cold War (Job Market Paper) Oliver Latham∗ University of Cambridge Abstract We examine whether there is systematic evidence that the US intelligence services pandered to their political masters when constructing intelligence estimates during the Cold War. We construct a model which shows how career concerns on the part of intelligence analysts could lead them to distort reports towards their president’s prior beliefs. We then take...»

«Voter Con.rmation Bias and Electoral Accountability¤ Ben Lockwood University of Warwick First version: 8 February 2015 This version: 9 May 2015 Abstract This paper considers the implications of an important cognitive bias in information processing, con.rmation bias, in a political agency setting. In the baseline two-period case where only the politician’s actions are observable before the election, we show that when voters have this bias, it decreases pandering by the incumbent, and can...»

«Paper prepared for presentation at the Annual Convention of the International Studies Association, Montreal, Quebec, Canada, March 16–19, 2011. Pandemonium in Silico: Individual Radicalization for Agent-Based Modeling Claudio Cioffi-Revilla and Joseph F. Harrison Center for Social Complexity and Department of Computational Social Science Krasnow Institute for Advanced Study, George Mason University Fairfax, VA 22030 USA Abstract. How do individuals become radicalized, turning into terrorists,...»

«Tauheedul Islam Girls’ High School and Sixth Form College To promote a culture of educational excellence, from within a caring and secure Islamic environment enriched with the values of discipline, mutual care and respect which extends beyond the school into the wider community. ASPIRATION AND ACHIEVEMENT: SUPPORTING PUPILS WITH SPECIAL EDUCATIONAL NEEDS Information Report, Policy and Guidance 2014-15 Document control This policy has been approved for operation within Tauheedul Islam Girls’...»

«Thailand: Orathai Kokpol Electoral Politics in Thailand Orathai Kokpol Introduction Thailand’s new constitution of 1997 (B.E. 2540) set down new rules and a framework for various fundamental changes in the Thai political and administrative system. As such, great hopes for political reform towards sustainable democracy have been pinned on it. In particular, elections, as a necessary condition for democracy, have changed significantly. The intention is to have more open, fair and meaningful...»

«Brubaker vita, p. 1 of 6 Rogers Brubaker Dept. of Sociology Tel 310-825-1129 UCLA Fax 310-206-9838 264 Haines Hall e-mail: brubaker@soc.ucla.edu 375 Portola Plaza http://www.sscnet.ucla.edu/soc/faculty/brubaker/ Los Angeles, CA 90095-1551 Present Position Professor of Sociology and UCLA Foundation Chair, University of California, Los Angeles Previous position Junior Fellow, Society of Fellows, Harvard University (1988-1991) Education 1990 Columbia University. Ph.D. in Sociology 1980 University...»

«THE CEIBA TREE AS A MULTIVOCAL SIGNIFIER: Afro-Cuban Symbolism, Political Performance, and Urban Space in the Cuban Republic Joseph Hartman, M.A. Student, Department of Art Education and Art History, University of North Texas INTRODUCTION: AFRO-CUBAN SYMBOLISM, POLITICAL PERFORMANCE, AND URBAN SPACE Ivor Miller’s article “Religious Symbolism in Cuban Political Performance” brings to light an interesting phenomenon: twentieth-century Cuban politicians used symbols that were associated with...»

«DIFFERENT SEASONS BY STEPHEN KING Contents 01 RITA HAYWORTH AND SHAWSHANK REDEMPTION 02 APT PUPIL 03 THE BODY 04 THE BREATHING METHOD 05 AFTERWORD RITA HAYWORTH AND SHAWSHANK REDEMPTION There's a guy like me in every state and federal prison in America, I guess I'm the guy who can get it for you. Tailor-made cigarettes, a bag of reefer, if you're partial to that, a bottle of brandy to celebrate your son or daughter's high school graduation, or almost anything else. within reason, that is. It...»

<<  HOME   |    CONTACTS
2016 www.dissertation.xlibx.info - Dissertations, online materials

Materials of this site are available for review, all rights belong to their respective owners.
If you do not agree with the fact that your material is placed on this site, please, email us, we will within 1-2 business days delete him.