English, Article, Journal or magazine article edition: Vote-Share Contracts and Learning-by-Doing Markus Müller

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Bookmark: http://trove.nla.gov.au/version/105231
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Vote-Share Contracts and Learning-by-Doing
Author
  • Markus Müller
Physical Description
  • preprint
Notes
  • We examine the interaction between vote-share contracts and learning-by-doing. Candidates for a political office are allowed to offer vote-share thresholds. The elected politician has to achieve at least this threshold value in his reelection result to remain in office for a second term. We assume there are learningby- doing effects for incumbents and show that competition leads to vote-share contracts implementing the socially optimal threshold, which is above one-half. Vote-share contracts improve the average ability level of a reelected politician and increase effort in the first term of an incumbent. On the other hand, vote-share contracts reduce the probability that learning-by-doing takes place. However, the overall effect of vote-share contracts is welfare-enhancing, even under the assumption of learning-by-doing.
  • elections, political contracts, vote-share thresholds, learning-by-doing effects, incumbency advantage
  • RePEc:eth:wpswif:09-114
Language
  • English
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