EconPapers    
Economics at your fingertips  
 

The Perils of Friendly Oversight

Dino Gerardi, Edoardo Grillo and Ignacio Monzon ()

No 16100, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: In democratic societies, politicians craft reform proposals which are then subject to the scrutiny of external authorities. Politicians want their proposals approved and can work to improve their quality. Authorities have their own agendas: they may be in favor or against the reforms under their scrutiny. We study how the authority's agenda affects the likelihood that a reform is approved and its quality. We show that an authority in favor of a reform can be detrimental towards its approval. This happens when it is easy to incentivize the politician's work and the status quo alternative is not too attractive.

Keywords: information transmission; moral hazard; oversight; Persuasion (search for similar items in EconPapers)
JEL-codes: D72 D73 D82 D83 (search for similar items in EconPapers)
Date: 2021-05
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=16100 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Working Paper: The Perils of Friendly Oversight (2022) Downloads
Working Paper: The Perils of Friendly Oversight (2021) Downloads
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:cpr:ceprdp:16100

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... rs/dp.php?dpno=16100

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().

 
Page updated 2022-08-11
Handle: RePEc:cpr:ceprdp:16100