Abstract:
n this paper we show that in a simple spatial model where the government is chosen under strict proportional rule, if the outcome function is a linear combination of parties' positions, with coefficient equal to their share of votes, essentially only a two-party equilibrium exists. The two parties taking a positive number of votes are the two extremist ones. Applications of this result include an extension of the well-known Alesina and Rosenthal model of divided government as well as a modified version of Besley and Coate's model of representative democracy. Different outcome functions are then analyzed.
Ordering information: This working paper can be ordered from CEIS - Centre for Economic and International Studies - Faculty of Economics - University of Rome "Tor Vergata" - Via Columbia, 2 00133 Roma http://www.ceistorvergata.it
More papers in CEIS Research Paper from Tor Vergata University, CEIS Address: CEIS - Centre for Economic and International Studies - Faculty of Economics - University of Rome "Tor Vergata" - Via Columbia, 2 00133 Roma Contact information at EDIRC. Series data maintained by Marcello Di Biagio ().
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