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Partisan stabilization policy and voter control

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  • David Kiefer

Abstract

. Representative democracy is a principal-agent institution. Voter influence over macroeconomic policy should be noticeable during election years when the president (agent) and median voter (principal) disagree about goals. They might disagree due to the prospective benefit of choosing a policymaker who is more conservative than the voter. This conclusion is demonstrated analytically in a new Keynesian model of endogenous stabilization in which the president reacts quickly to lean against the macroeconomic wind. We support the principalagent characterization of voters and presidents in an endogenous policy model with regression estimates of growth rate targets, allowing for differences between Democrats and Republicans. Copyright Springer Science + Business Media, Inc. 2005

Suggested Citation

  • David Kiefer, 2005. "Partisan stabilization policy and voter control," Public Choice, Springer, vol. 122(1), pages 115-132, January.
    • Handle: RePEc:kap:pubcho:v:122:y:2005:i:1:p:115-132
    DOI: 10.1007/s11127-005-3991-5
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    Cited by:

    1. Gerald T. Fox, 2009. "Partisan Divide on War and the Economy," Journal of Conflict Resolution, Peace Science Society (International), vol. 53(6), pages 905-933, December.
    2. David Kiefer, 2008. "New Keynesian Endogenous Stabilization in a Panel of Countries," Working Paper Series, Department of Economics, University of Utah 2008_19, University of Utah, Department of Economics.
    3. David Kiefer, 2006. "Endogenous Stabilization in Open Democracies," Working Paper Series, Department of Economics, University of Utah 2006_01, University of Utah, Department of Economics.

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