Using Re-election Thresholds to Curb Political Polarization

Hans Gersbach, Philippe Muller and Oriol Tejada

No 16037, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We examine how tightening reelection hurdles for incumbents can curb political polarization and increase welfare. We use a two-period model in which a politician is elected for office in the first period and enacts a new policy. In the second period, elections take place between the incumbent and a challenger, and the winning candidate chooses the extent to which the first-period policy is reformed. Reforming a policy is costly, and such costs increase with the policy shift and are borne by parties and voters. We show that raising the vote-share needed for re-election above one half reduces policy polarization and increases welfare. Moreover, the latter measures depend on the re-election threshold in a non-monotonic way and a particular (intermediate) threshold simultaneously minimizes policy polarization and maximizes welfare.

Keywords: Elections; Political polarization; Costs of change; Re-election hurdles (search for similar items in EconPapers)
JEL-codes: C72 D72 D78 H4 (search for similar items in EconPapers)
Date: 2021-04
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