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Moderating Political Extremism: Single Round vs Runoff Elections under Plurality Rule

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  • Tabellini, Guido
  • Bordignon, Massimo
  • Nannicini, Tommaso

Abstract

We compare single round vs runoff elections under plurality rule, allowing for partly endogenous party formation. Under runoff elections, the number of political candidates is larger, but the influence of extremist voters on equilibrium policy and hence policy volatility is smaller, because the bargaining power of the political extremes is reduced compared to single round elections. The predictions on the number of candidates and on policy volatility are confirmed by evidence from a regression discontinuity design in Italy, where cities above 15,000 inhabitants elect the mayor with a runoff system, while those below hold single round elections.

Suggested Citation

  • Tabellini, Guido & Bordignon, Massimo & Nannicini, Tommaso, 2014. "Moderating Political Extremism: Single Round vs Runoff Elections under Plurality Rule," CEPR Discussion Papers 10323, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:10323
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    More about this item

    Keywords

    Electoral rules; Policy volatility; Regression discontinuity design;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

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