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Information, Polarization and Delegation in Democracy

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  • Christian Schultz

    (Institute of Economics, University of Copenhagen)

Abstract

This paper investigates the merits of different democratic institutions when politics is uni-dimensional, there is uncertainty both about the preferences of the future electorate and the future polarization of political parties, and politicians have better information about the state of the world than voters. Three types of institutions are compared: direct democracy, representative democracy where politicians are accountable, and independent agencies where they are not. Low uncertainty about the state of the world and the future electorate’s preferences and high expected polarization make direct democracy optimal, while the opposite configuration makes representative democracy optimal. Independent agencies are optimal for intermediate values.

Suggested Citation

  • Christian Schultz, 2003. "Information, Polarization and Delegation in Democracy," EPRU Working Paper Series 03-16, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
    • Handle: RePEc:kud:epruwp:03-16
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    References listed on IDEAS

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    1. Christian Schultz, 1996. "Polarization and Inefficient Policies," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 63(2), pages 331-344.
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    14. : Christian Schultz, "undated". "Polarization and Inefficient Policies," Discussion Papers 93-16, University of Copenhagen. Department of Economics.
    15. John G. Matsusaka, 1992. "Economics of Direct Legislation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(2), pages 541-571.
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    Citations

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    Cited by:

    1. Alberto Alesina & Guido Tabellini, 2003. "Bureaucrats or Politicians?," Working Papers 238, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    2. Vidal, Jordi Blanes I & Leaver, Clare, 2008. "Pandering judges," LSE Research Online Documents on Economics 58174, London School of Economics and Political Science, LSE Library.
    3. Michael Ehrmann & Marcel Fratzscher, 2011. "Politics and Monetary Policy," The Review of Economics and Statistics, MIT Press, vol. 93(3), pages 941-960, August.
    4. James E. Alt & David D. Lassen, 2008. "Political And Judicial Checks On Corruption: Evidence From American State Governments," Economics and Politics, Wiley Blackwell, vol. 20(1), pages 33-61, March.
    5. Margaret Stevens & Jordi Blanes i Vidal, 2008. "Pandering Judges," Economics Series Working Papers 390, University of Oxford, Department of Economics.
    6. Erkoc, Taptuk Emre, 2013. "Efficiency of Public Sector Organizations: Perspectives from Theories of Bureaucracy," MPRA Paper 49386, University Library of Munich, Germany.
    7. Alesina, Alberto & Tabellini, Guido, 2008. "Bureaucrats or politicians? Part II: Multiple policy tasks," Journal of Public Economics, Elsevier, vol. 92(3-4), pages 426-447, April.
    8. Alberto Alesina & Guido Tabellini, 2005. "Why Do Politicians Delegate?," NBER Working Papers 11531, National Bureau of Economic Research, Inc.
    9. Guido Merzoni & Federico Trombetta, 2016. "The cost of doing the right thing. A model of populism with rent-seeking politicians and the economic crisis," DISEIS - Quaderni del Dipartimento di Economia internazionale, delle istituzioni e dello sviluppo dis1602, Università Cattolica del Sacro Cuore, Dipartimento di Economia internazionale, delle istituzioni e dello sviluppo (DISEIS).
    10. Blanes i Vidal, Jordi & Leaver, Clare, 2011. "Are tenured judges insulated from political pressure?," Journal of Public Economics, Elsevier, vol. 95(7), pages 570-586.
    11. Alberto Alesina & Guido Tabellini, 2007. "Bureaucrats or Politicians? Part I: A Single Policy Task," American Economic Review, American Economic Association, vol. 97(1), pages 169-179, March.
    12. Jordi Blanes i Vidal & Clare Leaver, 2008. "Pandering Judges," STICERD - Economic Organisation and Public Policy Discussion Papers Series 002, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.

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    More about this item

    Keywords

    accountability; redistribution; constitutional design; voting; information; direct democracy;
    All these keywords.

    JEL classification:

    • H1 - Public Economics - - Structure and Scope of Government
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations
    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior

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