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Gridlock and Delegation in a Changing World

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  • Callander, Steven

    (Stanford University)

  • Kreibiel, Keith

    (Stanford University)

Abstract

Fixed statutes and regulations often have variable consequences over time. If left unattended, such drift can severely erode the performance of government as an institution of representation. To better understand the mechanics of policy-making in a changing world, we develop a positive theory that captures political drift in a dynamic, separation-of-powers system. We show analytically that a distinctive combination of legislative supermajoritarianism and agency autonomy institutional features that, in isolation, elicit widespread criticism--can effectively ameliorate policies' susceptibility to the vicissitudes of exogenous change. The critical mechanism for governmental accommodation of drift is delegation, which increases all decision-makers' well-being by reducing fluctuations in outcomes. Although the complete smoothing of outcomes is attainable in a separation of powers system, we show that this is typically not achieved in equilibrium. The presence of drift provides an opportunity for self-interested legislators to extract a distributional benefit from their fellow legislators at the expense of overall policymaking efficiency.

Suggested Citation

  • Callander, Steven & Kreibiel, Keith, 2012. "Gridlock and Delegation in a Changing World," Research Papers 2100, Stanford University, Graduate School of Business.
  • Handle: RePEc:ecl:stabus:2100
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    References listed on IDEAS

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    2. Nunnari, Salvatore, 2021. "Dynamic legislative bargaining with veto power: Theory and experiments," Games and Economic Behavior, Elsevier, vol. 126(C), pages 186-230.
    3. Bowen, T. Renee & Chen, Ying & Eraslan, Hülya & Zápal, Jan, 2017. "Efficiency of flexible budgetary institutions," Journal of Economic Theory, Elsevier, vol. 167(C), pages 148-176.
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    6. Myunghoon Kang, 2017. "Representation, sophisticated voting, and the size of the gridlock region," Journal of Theoretical Politics, , vol. 29(4), pages 623-646, October.
    7. Jordan Carr Peterson, 2018. "All Their Eggs in One Basket? Ideological Congruence in Congress and the Bicameral Origins of Concentrated Delegation to the Bureaucracy," Laws, MDPI, vol. 7(2), pages 1-15, May.
    8. Shadmehr, Mehdi, 2015. "Simple decision rules in small groups: Collegial rule vs. rotational rule," Journal of Economic Behavior & Organization, Elsevier, vol. 113(C), pages 51-63.
    9. van Gruisen, Philippe & Crombez, Christophe, 2021. "The Commission and the Council Presidency in the European Union: Strategic interactions and legislative powers," European Journal of Political Economy, Elsevier, vol. 70(C).
    10. Zapal, Jan, 2020. "Simple Markovian equilibria in dynamic spatial legislative bargaining," European Journal of Political Economy, Elsevier, vol. 63(C).

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