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Political Competition and Polarization

Christian Schultz ()

No 96-04, Discussion Papers from University of Copenhagen. Department of Economics

Abstract: This paper considers political competition and the consequences of political polarization when parties are better informed about how the economy functions than voters are. Specifically, parties know the cost producing a public good, voters do not. An incumbent's choice of policy acts like a signal for costs before an upcoming election. It is shown that the more polarized the political parties the more distorted the incumbent's policy choice.

Pages: 22 pages
Date: 1996-04
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Working Paper: Political Competition and Polarization (1996)
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Persistent link: https://EconPapers.repec.org/RePEc:kud:kuiedp:9604

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