Political Competition and Polarization
Christian Schultz ()
No 96-04, Discussion Papers from University of Copenhagen. Department of Economics
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
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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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