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On the Role of the Governmental Agreement in Breaking Political Deadlocks

Author

Listed:
  • Robert A.J. Dur

    (Erasmus University Rotterdam)

  • Otto H. Swank

    (Erasmus University Rotterdam)

Abstract

This discussion paper resulted in a publication in the 'European Journal of Political Economy', 1998, 14(3), 561-572. Resistance to socially desired reforms may arise from uncertainty about the consequences of reforms at the individual level (Fernandez and Rodrik, 1991). Without a binding commitment, a promise to compensate losers will not raise support for reforms due to a credibility problem. This paper shows that voting simultaneously on several reforms may solve the credibility problem. It is argued that the governmental agreement in the Netherlands has served as a means to vote simultaneously on several reforms and has helped breaking political deadlocks. Moreover, our model provides an explanation for some perceived changes in the Dutch policy making process.

Suggested Citation

  • Robert A.J. Dur & Otto H. Swank, 1997. "On the Role of the Governmental Agreement in Breaking Political Deadlocks," Tinbergen Institute Discussion Papers 97-023/1, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:19970023
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    References listed on IDEAS

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    1. Haggard, Stephan & Webb, Steven B, 1993. "What Do We Know about the Political Economy of Economic Policy Reform?," The World Bank Research Observer, World Bank, vol. 8(2), pages 143-168, July.
    2. John Williamson, 1994. "The Political Economy of Policy Reform," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 68, April.
    3. William D. Nordhaus, 1975. "The Political Business Cycle," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 42(2), pages 169-190.
    4. Dani Rodrik, 1996. "Understanding Economic Policy Reform," Journal of Economic Literature, American Economic Association, vol. 34(1), pages 9-41, March.
    5. John Ferejohn, 1986. "Incumbent performance and electoral control," Public Choice, Springer, vol. 50(1), pages 5-25, January.
    6. Fernandez, Raquel & Rodrik, Dani, 1991. "Resistance to Reform: Status Quo Bias in the Presence of Individual-Specific Uncertainty," American Economic Review, American Economic Association, vol. 81(5), pages 1146-1155, December.
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    Cited by:

    1. Dur, Robert A. J. & Swank, Otto H., 1998. "The role of governmental agreements in breaking political deadlock," European Journal of Political Economy, Elsevier, vol. 14(3), pages 561-572, August.
    2. Robert A.J. Dur & Otto H. Swank, 1997. "A Theory of Policy Reversal," Tinbergen Institute Discussion Papers 97-079/1, Tinbergen Institute.

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    More about this item

    Keywords

    Policy reform; Credibility; Government formation; Voting behaviour; Mid-term cycle;
    All these keywords.

    JEL classification:

    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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