Policy Bundling and Costly Monitoring
Keyword(s):
Type I
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When should elected officials be in charge of multiple vs single policy areas? To study this question, I analyze a formal model of political accountability where politicians can have authority over one or two policy areas. When all politicians act sincerely, voters are always better off with unbundled policies. However, the voter is indifferent when all politicians pander. When bundled politicians partially-pander, the optimal institution is dependent on how likely the politician is to be a good type. I then show that voters are willing to spend more to monitor politicians in charge of multiple policy areas.
Keyword(s):
2013 ◽
Vol 14
(1)
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pp. 97-125
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