Biased beliefs and retrospective voting: why democracies choose mediocre policies

There are two well-established empirical regularities about voters. First, they entertain systematically biased beliefs about how public policies affect economic outcomes. Second, voters vote retrospectively: they punish the incumbent for poor and reward him for good macroeconomic performance. Thus, political parties face a trade-off: offering popular yet economically harmful policies increases the chance of being elected today, but decreases the chance of re-election. We provide the first rigorous game-theoretical analysis of the trade-off. The model addresses two questions: How can biased beliefs and retrospective voting be explained consistently? What policy outcomes emerge in party competition? To micro-found persistently biased beliefs we introduce the psychological concept of mental models. Deviating from earlier studies, we allow parties to choose strategic mixtures of populist (i.e., bad yet popular) and good (but less popular) platforms. We show that retrospective voting provides a self-correction mechanism, so that parties offer strategic mixtures of policies in equilibrium rather than purely populist or purely good policy platforms. Thus, democracy is characterized by mediocre policy choices and half-hearted reforms. An incumbent bias or unclear responsibilities weaken the self-correction mechanism.     

Strategic voting,information, and ethnicity in emerging democracies: Evidence from Kenya

This paper explores the conditions under which voters in emerging democracies support non-viable candidates. We argue that cognitive biases and the geographic clustering of minor-party supporters in ethno-political enclaves lead to misperceptions about the electoral prospects of minor-party candidates, weakening strategic defections both among co-ethnic and non-co-ethnic supporters. We explore these arguments using original survey data from Kenya's 2007 presidential election, a contest that featured a minor-party candidate, Kalonzo Musyoka, who stood little chance of electoral victory. Despite this, results show that most of his supporters chose to vote for the candidate, failing to perceive that he was not a viable contender. The findings suggest that theories of political behavior in multi-ethnic settings can be enriched by drawing upon insights from the political psychology literature on belief formation.     

Condemning corruption while condoning inefficiency: an experimental investigation into voting behavior

This article reports results from an economic experiment that investigates the extent to which voters punish corruption and waste in elections. While both are responsible for reductions in voters’ welfare, they are not necessarily perceived as equally immoral. The empirical literature in political agency has not yet dealt with these two dimensions of voters’ choice calculus. Our results suggest that morality and norms are indeed crucial for a superior voting equilibrium in systems with heterogeneous politicians: while corruption always is punished, self-interest alone—in the absence of norms—leads to the acceptance and perpetuation of waste and social losses.     

Executive capacity to control legislatures and presidential choice of cabinet ministers in East Asian democracies

How do presidents in new democracies choose cabinet ministers to accomplish their policy goals? Contrary to existing studies explaining the partisan composition of the cabinet with institutional characteristics, such as formal authority, we argue that the broader political context surrounding the president's ability to control the legislature can affect cabinet partisanship. By analyzing original data on cabinet formation in all presidential systems in East Asia since democratization, we find that when presidents are more likely to be dominant in executive–legislative relations, they have less concern about legislative support and more leeway to focus on policy performance by appointing nonpartisan cabinet members. This analysis suggests that understanding cabinet partisanship requires a view of cabinet appointments as a trade‐off between securing legislative support and managing policy performance, and the scope of this compromise depends on the strength of the president vis‐à‐vis the legislature.     

Rough days in democracies: Comparing protests in democracies

Abstract.  Democratic political institutions are generally designed to channel public opinion; yet citizens often take to the streets in protest. Why would citizens, provided with formal mechanisms to affect the policy process, resort to extraordinary means? This article argues that the strength of representative institutions influences the likelihood of protest. The democratic institution literature does not address the issue of protest and in the protest literature effects of the democratic governmental structure have been largely underestimated. However, the diversity in government formats across democratic states and the corresponding variation in amount of protests leads one to question the relationship between them. This article identifies the variation in the scale of protests among democratic regimes in Western European countries using the European Protest and Coercion Data and explains protest using variation in the forms of government. Protesters in democratic countries with a weak legislature find it difficult to deliver their demands to government due to the institutional environment. Therefore, they are more inclined to protest than citizens in countries with a strong legislature. This argument is tested along with other structural variables and supported by results from testing models using ordinary least squares with panel-corrected standard errors.     

Mexicans react to electoral fraud and political corruption: an assessment of public opinion and voting behavior

Despite various electoral reforms enacted in Mexico between 1988 and 1994, large numbers of Mexicans doubted the honesty of elections and the general integrity of their country's policy making process. Such doubts did not automatically lead, however, to support for opposition parties that called for greater democratization. Rather, voter preferences were largely dependent on judgments about the opposition's viability and competence. Widespread suspicions about fraud and corruption in Mexico did affect electoral outcomes by making it less likely that potential opposition supporters turned out to vote. Data are drawn from seven national public opinion surveys conducted in Mexico in 1986, 1988, 1991, 1994 (3 polls), and 1995.     

Turnout in electoral democracies

Abstract. We examine turnout in 324 democratic national lower house elections held in 91 countries, between 1972 and 1995. We rely on Freedom House ratings of political rights to determine whether an election is democratic or not. We distinguish three blocs of factors that affect turnout: the socio–economic environment, institutions, and party systems. We show that turnout is influenced by a great number of factors and that the patterns that have been shown to prevail in studies dealing with more limited samples of countries generally hold when we look at a larger set of democracies. But we also show that the socioeconomic environment, which has been downplayed in previous studies, has a substantial impact on turnout.     

Class voting and left voting in Scandinavia

Abstract. This article examines the effects of different definitions of the working class on the measurement of class voting and left voting in Denmark, Norway and Sweden. First, the similarities and differences in how the working class has been operationalized in the three countries are summarized. To determine the effects of different operationalizations, Swedish election survey data are recoded to conform more closely to the classification procedures used in Danish and Norwegian studies. The analysis shows that if a similar operationalization is used, the level of left voting in both the Swedish working and middle classes increases and the Alford index of class voting declines. Class voting and left voting in the younger and older generations and among women and men are also discussed. Dissimilar patterns of class voting and left voting among women in the three countries are largely a product of different classification schemes. The concluding discussion points to a number of problems in using the Alford index as a summary statistic in cross-national comparisons.     

Delegation and accountability in parliamentary democracies

Abstract. Parliamentary democracy has been widely embraced by politicians and especially by the scholarly community but remains less widely understood. In this essay, I identify the institutional features that define parliamentary democracy and suggest how they can be understood as delegation relationships. I propose two definitions: one minimal and one maximal (or ideal–typical). In the latter sense, parliamentary democracy is a particular regime of delegation and accountability that can be understood with the help of agency theory, which allows us to identify the conditions under which democratic agency problems may occur. Parliamentarism is simple, indirect, and relies on lessons gradually acquired in the past. Compared to presidentialism, parliamentarism has certain advantages, such as decisional efficiency and the inducements it creates toward effort. On the other hand, parliamentarism also implies disadvantages such as ineffective accountability and a lack of transparency, which may cause informational inefficiencies. And whereas parliamentarism may be particularly suitable for problems of adverse selection, it is a less certain cure for moral hazard. In contemporary advanced societies, parliamentarism is facing the challenges of decaying screening devices and diverted accountabilities.     

Legislative agenda-setting in parliamentary democracies

Various strands of literature in comparative politics regard governments as the only noteworthy initiators and mainsprings of legislative policy making in parliamentary democracies. Opposition activity in policy making is more often associated with the intention to prevent, rather than to shape, policy. Does this perception reflect real‐life politics? To answer this question, this article discusses different arguments that link institutional and policy‐related characteristics to the incentives and constraints of different government and parliamentary actors to initiate or co‐sponsor legislative bills. More specifically, it relates policy‐, office‐ and vote‐related incentives, as well as institutional and resource constraints of legislative actors, to the likelihood that these actors will take the lead in legislative agenda‐setting. These arguments are confronted with original data on the universe of all legislative bills in four parliamentary systems over one and a half decades. The article concludes that opposition and, in particular, bipartisan agenda‐setting is indeed rare. Yet, in contrast to widely held maxims, it is neither absent nor spurious, but related to the allocation of power and the intensity of ideological conflict both within and between the (coalition) government and parliament.     

Government survival in Western multi-party democracies

Abstract Based upon findings in other fields in the social sciences, it is proposed in this article that cooperation between government parties can be induced when parties in governments are able to exercise credible exit threats. As stability is more likely to be induced by cooperation than by defection, more durable governments can be expected. The possibility for credible exit threats in a government is operationalized via the presence of a dominant party in the government. The corresponding prediction is tested against a data set that contains 261 postwar governments in twelve western multiparty democracies. In the event history analyses of government survival, I control for variables pertaining to the bargaining environment, bargaining complexity, and the ideological diversity of the governments. It is found that the presence of dominant parties in governments does indeed enhance the survival time of governments.     

Economic globalization and voter turnout in established democracies

This paper asks whether international economic integration negatively affects electoral turnout. The theoretical model builds on the premise that economic integration constrains the ability of national governments to shape outcomes. Citizens are conscious of such constraints and take them into account when considering the costs and benefits of casting a vote in national elections. The result is a lower inclination to vote under conditions of high economic integration. Consequently, aggregate turnout is lower the more internationally integrated a national economy is. Analysis of aggregate data for parliamentary elections in 23 OECD democracies over the period 1965–2006 robustly supports this hypothesis. The empirical estimates suggest economic globalization as a central cause of the general decline in turnout within established democracies.     

Government 'strength' and budget deficits in advanced democracies

Abstract. Roubini and Sachs provided the first systematic test of the idea that political structure the size, composition, diversity, and/or stability of a governing cabinet - is related to budget deficits. In this paper, we take issue with several of Roubini and Sachs' choices concerning data and operationalization, and argue that their approach cannot offer clear conclusions about the relationship between national political structure and budget deficits. We test the 'strength of government' hypothesis using central government finance data on 16 countries, 1959–1990. We measure deficits in a way that maximizes comparability across countries but avoids the potential problems of standardizing by GDP. We examine carefully the definition and measurement of 'strength of government', in light of recent theoretical and empirical work in comparative politics. We perform pooled time-series regression analysis of deficit change in 16 OECD countries for the period 1959–1990. We argue that while structural differences between governments may have little impact on deficits during good economic times, they may become especially noticeable and influential during periods when governments struggle to cope with severe economic problems.     

Political representation and ethnic conflict in new democracies

Abstract.  This article is an exploratory analysis of the efficacy of parliamentary representation as a means to moderate ethnic conflict in new democracies. The authors agree with many others that the interests of a minority ethnic group are better protected when the group has access to decision makers, can block harmful government policies and veto potentially damaging decisions. Parliamentary representation, however, does not always allow for an effective representation of those who are not in government. Seats in the legislature may be of little use in a parliament where the executive dominates the policy process at all stages. This article focuses on the new democracies of Eastern Europe and the former Soviet Union between 1990 and 2000. The authors use the number of parliamentary seats obtained by minority ethnic parties as their main independent variable and the MAR ethnic protest and rebellion scores as their dependent variables. In addition, they employ the system of government (i.e., parliamentary versus presidential) as a proxy indicator of the degree of influence that parliamentary parties have over decision making. A cross-section-time-series regression analysis shows that the ameliorative effect of parliamentary representation over ethnic conflict is stronger in those legislatures where the ethnic group has effective influence over decision making. It is also shown that representation within national parliaments has no ameliorative effects over violent secessionist conflicts. When the ethnic minority's demands are too radical, parliamentary representation is simply an inadequate instrument.     

Disproportionality and voter turnout in new and old democracies

A long-standing puzzle in electoral research is why the disproportionality of electoral systems has a negative effect on voter participation in established democracies, but not in new democracies. We propose a learning theory of electoral system’s effects, and test it in a cross-national analysis and by using Spain as a case study. Electoral disproportionality is unrelated to voter participation in early elections after democratization, but the relationship is increasingly visible as democracies grow older. The case study uncovers two mechanisms: small parties optimize their mobilization strategy only after the first democratic elections, and the difference in the turnout rates of small party supporters and large party supporters grows over time. Time is needed before the consequences of electoral systems are fully revealed. Importantly, the findings suggest that studies carried out just after an electoral system is created or reformed may provide downward biased estimates of their long-term consequences.     

Droughts and corruption

Public Choice - Natural disasters are challenges for good governance. That conclusion follows from recent research investigating the effects of natural disasters on one important force hostile to...     

The place of parties in contemporary democracies

The electoral system has often been considered an important determinant of the political stability that the Federal Republic of Germany has enjoyed in the half-century of its existence, so that it has been often indicated as a 'model' for electoral reforms in other democracies. The analysis of the political impact of the German electoral system after 1949 shows that such impact was different in the different phases of evolution of the party system. In the 1950s, the German party system was characterised by a higher level of fractionalisation, which the electoral system contributed progressively to reduce. That phase was followed by 30 years of concentration and defractionalisation of the vote. In the last decade, the post-reunification party system presents again higher electoral fractionalisation, which the electoral system has partially reduced in the vote-seats translation. In the current political contingency it is doubtful, however, that the electoral system by itself can contain fragmentation on a durable basis.     

The use and effect of political propaganda in democracies

This paper examines the influence of political propaganda on voters and analyses the behavior of the interest groups in the face of the influence being exercised. By propaganda semitruths are distributed among the electorate. The decision taken by a voter results from his basic opinion and from the parts of information he receives. The analysis shows that the greater the likelihood of a certain decision being reached by a fully informed electorate, the more probable it is that the same decision will be reached by a rationally uninformed electorate. The pecuniary interest of an interest group is, however, also positively correlated with the probability that the electorate reaches a decision which is agreeable to that interest group. It has finally become apparent that the results of the approach concur well with empirical studies.