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An Empirical Investigation of Coalitional Bargaining Procedures

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  • Daniel Diermeier
  • Antoni Merlo

Abstract

Models of government formation processes in multi-party democracies are unusually highly sensitive to the rules that govern the selection of formateurs. The formal literature has exclusively focused on two selection rules: selection proportional to seat share (Baron and Ferejohn 1989), and selection in order of seat share (Austen-Smith and Banks 1988). In this paper we use a new data set on government formation attempts in 12 multi-party democracies to empirically assess which selection rule most closely approximates the data. We find that while there is no empirical support for selection in order of seat share, proportional selection may serve as a good first approximation. However, our results also indicate that formateur selection exhibits a significant incumbency effect: ceteris paribus, the former prime minister's party is more likely to be selected to attempt the formation of the next government.

Suggested Citation

  • Daniel Diermeier & Antoni Merlo, 1999. "An Empirical Investigation of Coalitional Bargaining Procedures," Discussion Papers 1267, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  • Handle: RePEc:nwu:cmsems:1267
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    References listed on IDEAS

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    1. Warwick, Paul V., 1996. "Coalition Government Membership in West European Parliamentary Democracies," British Journal of Political Science, Cambridge University Press, vol. 26(4), pages 471-499, October.
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    3. Persson, Torsten & Tabellini, Guido, 2002. "Political economics and public finance," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 3, chapter 24, pages 1549-1659, Elsevier.
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