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Explaining Institutional Change: Why Elected Politicians Implement Direct Democracy

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  • David Hugh-Jones

    (Max Planck Institute of Economics, Jena)

Abstract

In existing models of direct democratic institutions, the median voter beneï¬ ts, but representative politicians are harmed since their policy choices can be overridden. This is a puzzle, since representative politicians were instrumental in creating these institutions. I build a model of direct democracy that explains why a representative might beneï¬ t from tying his or her own hands in this way. The key features are (1) that voters are uncertain about their representative's preferences; (2) that direct and representative elections are complementary ways for voters to control outcomes. The model shows that some politicians beneï¬ t from the introduction of direct democracy, since they are more likely to survive representative elections: direct democracy credibly prevents politicians from realising extreme outcomes. Historical evidence from the introduction of the initiative, referendum and recall in America broadly supports the theory, which also explains two empirical results that have puzzled scholars: legislators are trusted less, but reelected more, in US states with direct democracy. I conclude by discussing the potential for incomplete information and signaling models to improve our understanding of institutional change more generally.

Suggested Citation

  • David Hugh-Jones, 2008. "Explaining Institutional Change: Why Elected Politicians Implement Direct Democracy," Jena Economics Research Papers 2008-085, Friedrich-Schiller-University Jena.
  • Handle: RePEc:jrp:jrpwrp:2008-085
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    References listed on IDEAS

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    1. Carles Boix, 1999. "Setting the rules of the game: The choice of electoral systems in advanced democracies," Economics Working Papers 367, Department of Economics and Business, Universitat Pompeu Fabra.
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    Cited by:

    1. Martin Gregor & Michael L. Smith, 2013. "Civic initiatives in the context of legal uncertainty," Journal of Theoretical Politics, , vol. 25(1), pages 36-62, January.
    2. Le Bihan, Patrick, 2015. "Popular Referendum and Electoral Accountability," IAST Working Papers 15-31, Institute for Advanced Study in Toulouse (IAST).

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    More about this item

    Keywords

    direct democracy; institutional change; referendums;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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