Advertisement

Economics of Governance

, Volume 15, Issue 3, pp 203–219 | Cite as

Importance of status quo when lobbying a coalition government

  • R. Emre AytimurEmail author
Original Paper
  • 228 Downloads

Abstract

Lobbying a coalition government is different from lobbying a single-party government, since in the case of a coalition government, the interest group can intervene in the intragovernmental decision process. In the case where the interest group prefers the status quo to the surplus maximizing policy, the interest group influences the policy without any contribution due to its credible threat to block unfavorable proposals. Furthermore, we show that when, say, a leftist coalition government may be replaced by a rightist coalition government, the final policy reflects a rightist interest group’s preferences more heavily due to the interest group’s forward-looking considerations.

Keywords

Lobbying Coalition governments Status quo Policy-making  Interest group contribution 

JEL Classification

C78 D72 D78 

Notes

Acknowledgments

I thank François Salanié, Jacques Crémer, the editor Mattias Polborn, and two anonymous referees for their very helpful comments. All remaining errors are mine.

References

  1. Austen-Smith D, Wright JR (1994) Counteractive lobbying. Am J Polit Sci 38(1):25–44CrossRefGoogle Scholar
  2. Baron DP (1998) Comparative dynamics of parliamentary governments. Am Polit Sci Rev 92(3):593–609CrossRefGoogle Scholar
  3. Baron DP (2006) Competitive lobbying and supermajorities in a majority-rule institution. Scand J Econ 108(4):607–642CrossRefGoogle Scholar
  4. Baron DP, Hirsch A (2012) Common agency lobbying over coalitions and policy. Econ Theory 49(3): 639–681Google Scholar
  5. Baskaran T (2013) Coalition governments, cabinet size, and the common pool problem: evidence from the German states. Eur J Polit Econ 32:356–376CrossRefGoogle Scholar
  6. Bernheim BD, Whinston MD (1986) Menu auctions, resource allocation, and economic influence. Q J Econ 101(1):1–32CrossRefGoogle Scholar
  7. Besley T, Coate S (2001) Lobbying and welfare in a representative democracy. Rev Econ Stud 68:67–82CrossRefGoogle Scholar
  8. Diermeier D, Feddersen TJ (1998) Cohesion in legislatures and the vote of confidence procedure. Am Polit Sci Rev 92(3):611–621CrossRefGoogle Scholar
  9. Groseclose T, Snyder JM (1996) Buying supermajorities. Am Polit Sci Rev 90:303–315CrossRefGoogle Scholar
  10. Grossman GM, Helpman E (1994) Protection for sale. Am Econ Rev 84:833–850Google Scholar
  11. Grossman GM, Helpman E (2001) Special interest politics. MIT Press, CambridgeGoogle Scholar
  12. Helpman E, Persson T (2001) Lobbying and legislative bargaining. Adv Econ Anal Policy 1(1), article 3Google Scholar
  13. Kunicova J, Rose-Ackerman S (2005) Electoral rules and constitutional structures as constraints on corruption. Br J Polit Sci 35:573–606CrossRefGoogle Scholar
  14. Martin LW, Vanberg G (2004) Policing the bargain: coalition government and parliamentary scrutiny. Am J Polit Sci 48(1): 13–27Google Scholar
  15. Muller W, Strom K (2000) Coalition governments in Western Europe. Oxford University Press, OxfordGoogle Scholar
  16. Perotti R, Kontopoulos Y (2002) Fragmented fiscal policy. J Public Econ 86:191–222CrossRefGoogle Scholar
  17. Persson T (1998) Economic policy and special interest politics. Econ J 108:310–327CrossRefGoogle Scholar
  18. Persson T, Tabellini G (2004) Constitutional rules and economic policy outcomes. Am Econ Rev 94:25–46CrossRefGoogle Scholar
  19. Persson T, Roland G, Tabellini G (2007) Electoral rules and government spending in parliamentary democracies. Q J Polit Sci 2(2):155–188Google Scholar
  20. Persson T, Tabellini G, Trebbi F (2003) Electoral rules and corruption. J Eur Econ Assoc 1(4):958–989Google Scholar
  21. Polborn M (2006) Investment under uncertainty in dynamic conflicts. Rev Econ Stud 73:505–529CrossRefGoogle Scholar
  22. Polborn MK, Sahakyan Z (2007) Dynamic lobbying conflicts. Econ Gov 8:263–279CrossRefGoogle Scholar
  23. Roubini N, Sachs J (1989) Political and economic determinants of budget deficits in the industrial democracies. Eur Econ Rev 33:903–938CrossRefGoogle Scholar
  24. Snyder JM Jr (1991) On buying legislatures. Econ Polit 3:93–109CrossRefGoogle Scholar
  25. Woo J (2003) Economic, political, and institutional determinants of public deficits. J Public Econ 87: 387–426Google Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2014

Authors and Affiliations

  1. 1.Chair of Public EconomicsGeorg-August University GöttingenGöttingenGermany

Personalised recommendations