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Scandal, Protection, and Recovery in the Cabinet

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  • DEWAN, TORUN
  • MYATT, DAVID P.

Abstract

Empirical evidence suggests that a prime minister benefits from firing ministers who are involved in political scandals. We explore a model in which scandals are positively related to policy activism, so that a prime minister may wish to protect a minister from resignation calls. We find that protection can sometimes discourage activism: it enhances the value of a minister's career and hence encourages him to “sit tight” by moderating his activities. On the other hand, an exogenous increase in exposure to scandals may lead a minister to “live for today” by pursuing controversial policies. The prime minister's ability to protect ministers is limited by her short-term incentive to fire. She may, however, enhance her credibility by building a collective reputation with the cabinet; the heterogeneity of cabinet membership plays an important role.

Suggested Citation

  • Dewan, Torun & Myatt, David P., 2007. "Scandal, Protection, and Recovery in the Cabinet," American Political Science Review, Cambridge University Press, vol. 101(1), pages 63-77, February.
    • Handle: RePEc:cup:apsrev:v:101:y:2007:i:01:p:63-77_07
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    Cited by:

    1. Kauder, Björn & Potrafke, Niklas, 2015. "Just hire your spouse! Evidence from a political scandal in Bavaria," European Journal of Political Economy, Elsevier, vol. 38(C), pages 42-54.
    2. Alessandra Bonfiglioli & Gino Gancia, 2013. "Uncertainty, Electoral Incentives and Political Myopia," Economic Journal, Royal Economic Society, vol. 0, pages 373-400, May.
    3. Torun Dewan & Andrea Galeotti & Christian Ghiglino & Francesco Squintani, 2015. "Information aggregation and optimal structure of the executive," LSE Research Online Documents on Economics 59632, London School of Economics and Political Science, LSE Library.
    4. Wioletta Dziuda & William G. Howell, 2021. "Political Scandal: A Theory," American Journal of Political Science, John Wiley & Sons, vol. 65(1), pages 197-209, January.
    5. Torun Dewan & David P. Myatt, 2010. "The Declining Talent Pool of Government," American Journal of Political Science, John Wiley & Sons, vol. 54(2), pages 267-286, April.
    6. Robert Akerlof & Richard Holden, 2016. "Movers and Shakers," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 131(4), pages 1849-1874.
    7. Christopher Li, 2021. "Indirect accountability of political appointees," Journal of Theoretical Politics, , vol. 33(3), pages 383-396, July.

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