Abstract
Presidents have substantial unilateral policymaking powers in the United States despite constitutional provisions for checks and balances. I study how electoral concerns encourage o ceholders to exercise these powers, using a formal model in which unilateral policymaking skill varies across o ceholders and is unknown to voters. Undesirable unilateral action is unavoidable in equilibrium under broad conditions. This perverse behavior occurs when the incumbent acts unilaterally to show o policymaking skill even though unilateral action is inferior policy. Showing o is driven by electoral motivations and occurs because unilateral action is important for re-election. I also characterize conditions under which the incumbent acts unilaterally in equilibrium if and only if it improves voter welfare.
Original language | English (US) |
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Pages (from-to) | 241-267 |
Number of pages | 27 |
Journal | Critical Finance Review |
Volume | 12 |
Issue number | 2 |
DOIs | |
State | Published - 2017 |
Externally published | Yes |
All Science Journal Classification (ASJC) codes
- Finance
Keywords
- Electoral accountability
- Political economy
- Presidency
- Unilateral policymaking