The Optimal Length of Political Terms

Hans Gersbach, Matthew Jackson and Oriol Tejada

No 14857, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We analyze the optimal length of political terms (equivalently, the optimal frequency with which elections should be held) when the candidates of two polarized parties compete for office and the median voter shifts over time. Office-holders determine policy and experience persistent random shocks to their valence. Policy changes are costly for citizens and politicians. Optimal term-length balances the frequency of costly policy changes when parties change office with the incumbent's average valence during tenure. We find that optimal term-length increases with party polarization, with the degree to which the median voter cares about valence, and with the frequency and the size of swings in the electorate. In contrast, optimal term-length decreases when candidates for office undergo less scrutiny or when parties care more about future outcomes. Finally, with small swings in the electorate and large polarization, optimal term-length increases if checks and balances increase.

Keywords: Elections; Term-length; Costs of change; Polarization (search for similar items in EconPapers)
JEL-codes: C72 C73 D72 D78 (search for similar items in EconPapers)
Date: 2020-06
New Economics Papers: this item is included in nep-gth, nep-mic and nep-pol
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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