A Dynamic Theory of Collective Goods Programs
David P. Baron
American Political Science Review, 1996, vol. 90, issue 2, 316-330
Abstract:
A collective goods program, such as an entitlement program, distributes benefits and costs according to constituents' characteristics. This paper presents a dynamic theory of the legislative choice of collective goods programs based on a sequential model of proposal-making and voting in a majority-rule legislature where the status quo in a session is given by the program last enacted. A stationary Markov perfect equilibrium is characterized for a unidimensional collective goods program and yields a generalized median voter theorem, comparative statics on preferences and legislative procedures, and a characterization of the dynamics of such programs. Equilibrium programs can expand or contract over time, but they ultimately converge to the median. On the path to that point, legislators may act strategically to address the durability problem—that a future legislature can undo the actions of the present legislature—by strategically positioning the status quo to limit the changes that future legislatures can make.
Date: 1996
References: Add references at CitEc
Citations: View citations in EconPapers (140)
Downloads: (external link)
https://www.cambridge.org/core/product/identifier/ ... type/journal_article link to article abstract page (text/html)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:cup:apsrev:v:90:y:1996:i:02:p:316-330_20
Access Statistics for this article
More articles in American Political Science Review from Cambridge University Press Cambridge University Press, UPH, Shaftesbury Road, Cambridge CB2 8BS UK.
Bibliographic data for series maintained by Kirk Stebbing (csjnls@cambridge.org).