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Seminario IECON: "Separation of Powers with Ideological Parties"

Presenta Juan Pereyra (DECON-FCS, UDELAR) en co-autoría con A. Forteza


Resumen

Separation of powers with checks and balances (SP) is usually regarded as a key institution complementing elections in the control of elected officials. However, some analysts and many politicians also warn that excessive checks on the executive in the presence of polarization may lead to political inaction. We present a political agency model with ideological parties where citizens and politicians care about rents (the valence issue) and policy (a positional issue). We show that SP unambiguously raises voters welfare in highly-polarized non-competitive political environments, because it strengthens both discipline and selection without causing political gridlock (voters can grant the executive the legislative majorities needed to enact reforms). SP also raises voters welfare if elections are very effective at disciplining first period incumbents. But SP may reduce voters welfare if most rents go undetected and reform is not a first order issue.



Martes 30/10/2018, 12hs.
Salón Multifuncional
Facultad de Ciencias Económicas y de Administración
 
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