Real value-added per employee in U.S. manufacturing fell between 2010 and 2016. Manufacturing accounted for over half the drop in private economy productivity growth between 1990-2000 and 2010-2016, though it accounted for less than 20% of aggregate value-added. While productivity growth fell in almost all three-digit manufacturing industries, almost 40% of the fall in aggregate manufacturing productivity growth reflected a slower decline of the deflator for computers and electronic products. Almost all of this drop seems to have reflected sharp slowdowns in the decline of the deflators for computers and, especially, semiconductors, for which measurement problems seem to have worsened.
{"title":"The Collapse of Labor Productivity Growth in U.S. Manufacturing after 2010","authors":"R. Schmalensee","doi":"10.2139/ssrn.3121771","DOIUrl":"https://doi.org/10.2139/ssrn.3121771","url":null,"abstract":"Real value-added per employee in U.S. manufacturing fell between 2010 and 2016. Manufacturing accounted for over half the drop in private economy productivity growth between 1990-2000 and 2010-2016, though it accounted for less than 20% of aggregate value-added. While productivity growth fell in almost all three-digit manufacturing industries, almost 40% of the fall in aggregate manufacturing productivity growth reflected a slower decline of the deflator for computers and electronic products. Almost all of this drop seems to have reflected sharp slowdowns in the decline of the deflators for computers and, especially, semiconductors, for which measurement problems seem to have worsened.","PeriodicalId":18164,"journal":{"name":"Macroeconomics: National Income & Product Accounts eJournal","volume":"64 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2018-02-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86169642","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Analysis of properties of the global trade network has generated new insights into the patterns of economic development across countries. The Economic Complexity Index (ECI), in particular, has been successful at explaining cross-country differences in GDP/capita and economic growth. The ECI aims to infer information about countries’ productive capabilities by making relative comparisons across countries' export baskets. However, there has been some confusion about how the ECI works: previous studies compared the ECI to the number of exports that a country has revealed comparative advantage in (`diversity') and to eigenvector centrality. We show that the ECI is, in fact, equivalent to a spectral clustering algorithm, which partitions a similarity graph into two parts. When applied to country-export data, the ECI represents a ranking of countries that places countries with similar exports close together in the ordering. More generally, the ECI is a dimension reduction tool, which gives the optimal one-dimensional ordering that minimizes the distance between nodes in a similarity graph. We discuss this new interpretation of the ECI with reference to the economic development literature. Finally, we illustrate stark differences between the ECI and diversity with two empirical examples based on regional data.
{"title":"A New Interpretation of the Economic Complexity Index","authors":"P. Mealy, J. Farmer, A. Teytelboym","doi":"10.2139/ssrn.3075591","DOIUrl":"https://doi.org/10.2139/ssrn.3075591","url":null,"abstract":"Analysis of properties of the global trade network has generated new insights into the patterns of economic development across countries. The Economic Complexity Index (ECI), in particular, has been successful at explaining cross-country differences in GDP/capita and economic growth. The ECI aims to infer information about countries’ productive capabilities by making relative comparisons across countries' export baskets. However, there has been some confusion about how the ECI works: previous studies compared the ECI to the number of exports that a country has revealed comparative advantage in (`diversity') and to eigenvector centrality. We show that the ECI is, in fact, equivalent to a spectral clustering algorithm, which partitions a similarity graph into two parts. When applied to country-export data, the ECI represents a ranking of countries that places countries with similar exports close together in the ordering. More generally, the ECI is a dimension reduction tool, which gives the optimal one-dimensional ordering that minimizes the distance between nodes in a similarity graph. We discuss this new interpretation of the ECI with reference to the economic development literature. Finally, we illustrate stark differences between the ECI and diversity with two empirical examples based on regional data.","PeriodicalId":18164,"journal":{"name":"Macroeconomics: National Income & Product Accounts eJournal","volume":"12 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2018-02-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"74239827","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Bertrand Garbinti, Jonathan Goupille-Lebret, T. Piketty
We combine national accounts, tax and survey data in a comprehensive and consistent manner for France, to build homogenous annual series on the distribution of national income by percentiles, from 1900 to 2014, with detailed breakdown by age, gender and income categories over the 1970-2014 period. Our new series deliver higher inequality levels for the recent decades, because the usual tax-based series miss a rising part of capital income. Growth incidence curves look dramatically different for the 1950-1983 and 1983-2014 periods. We also show that it has become increasingly difficult to access top wealth groups with labor income only. Next, gender inequality in labor income declined in recent decades, albeit fairly slowly among top labor incomes. Finally, we compare the evolution of income inequality between France and the U.S.
{"title":"Income Inequality in France, 1900-2014: Evidence from Distributional National Accounts (DINA)","authors":"Bertrand Garbinti, Jonathan Goupille-Lebret, T. Piketty","doi":"10.2139/ssrn.3165058","DOIUrl":"https://doi.org/10.2139/ssrn.3165058","url":null,"abstract":"We combine national accounts, tax and survey data in a comprehensive and consistent manner for France, to build homogenous annual series on the distribution of national income by percentiles, from 1900 to 2014, with detailed breakdown by age, gender and income categories over the 1970-2014 period. Our new series deliver higher inequality levels for the recent decades, because the usual tax-based series miss a rising part of capital income. Growth incidence curves look dramatically different for the 1950-1983 and 1983-2014 periods. We also show that it has become increasingly difficult to access top wealth groups with labor income only. Next, gender inequality in labor income declined in recent decades, albeit fairly slowly among top labor incomes. Finally, we compare the evolution of income inequality between France and the U.S.","PeriodicalId":18164,"journal":{"name":"Macroeconomics: National Income & Product Accounts eJournal","volume":"57 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2018-01-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84873211","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study examines how macroeconomic performance competition is related to the investment allocation at firm level. We use different GDP competitions as proxies of dynamic macroeconomic condition. We find that the effect of GDP competition on fixed assets investment is significantly positive. Further, we find that adjacent-wide GDP competition is associated with more M&As and nationwide GDP competition is associated with less R&D investment in the high group of fixed assets investment. We also show that GDP competition contributes to increase overinvestment and lower underinvestment, and the GDP competition is more likely to affect the investment allocations of SOEs (State Owned Enterprises). Especially, our analyses find that the probability of promotion is lower for those provincial leaders driving firms to take more M&As to promote economic growth than investing heavily in fixed assets. We use alternative proxies to measure GDP competition and find similar results that support our inference. Our findings support the notion that GDP competition of governments distorts investment behavior and contributes to discovering and elucidating investment problems and dilemma faced by emerging economy.
{"title":"GDP Competition and Investment Allocation: Evidence from China","authors":"Qiang Liu, Ying Hao, Jing Lu, Yong Du","doi":"10.2139/ssrn.3074290","DOIUrl":"https://doi.org/10.2139/ssrn.3074290","url":null,"abstract":"This study examines how macroeconomic performance competition is related to the investment allocation at firm level. We use different GDP competitions as proxies of dynamic macroeconomic condition. We find that the effect of GDP competition on fixed assets investment is significantly positive. Further, we find that adjacent-wide GDP competition is associated with more M&As and nationwide GDP competition is associated with less R&D investment in the high group of fixed assets investment. We also show that GDP competition contributes to increase overinvestment and lower underinvestment, and the GDP competition is more likely to affect the investment allocations of SOEs (State Owned Enterprises). Especially, our analyses find that the probability of promotion is lower for those provincial leaders driving firms to take more M&As to promote economic growth than investing heavily in fixed assets. We use alternative proxies to measure GDP competition and find similar results that support our inference. Our findings support the notion that GDP competition of governments distorts investment behavior and contributes to discovering and elucidating investment problems and dilemma faced by emerging economy.","PeriodicalId":18164,"journal":{"name":"Macroeconomics: National Income & Product Accounts eJournal","volume":"70 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2017-11-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"77881004","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
German Abstract: Deutschland verfügt über einen der weltweit höchsten Leistungsbilanzüberschüsse, gemessen am Bruttoinlandsprodukt. Damit zieht es massive Kritik seiner Handelspartner auf sich. Vom amerikani-schen Präsidenten Trump, über den Internationalen Währungsfonds bis hin zur Europäischen Kommission reichen die Vorwürfe, Deutschland gefährde mit seinen andauernden Leistungsbilanzüberschüssen die Stabilität des internationalen Handels. Das vorliegende Papier greift die kritischen internationalen Positionen auf und diskutiert mögliche Ursachen des Leistungsbilanzungleichgewichts. Schwerpunkt ist eine Auseinandersetzung mit dem Argument der Überersparnis (savings glut) als Ausdruck einer reifen Volkswirtschaft. Im Weiteren geht es um Wege zur Erhöhung der Konsumnachfrage und einer Ausweitung privater und staatlicher Investitionen. Als ein möglicher Schritt zu einer nachhaltigen Korrektur der Leistungsbilanzüberschüsse wird die Abschaffung der europäischen Schuldenbremse erörtert, die sich zugleich als eine Leistungsbilanzbremse erweisen kann. English Abstract: Germany has one of the highest current account surpluses in the world. This is criticised by its global trading partners and is subject to the European Macroeconomic Imbalance Procedure as well as to the IMF and the new us-government. However, this phenomenon is interpreted quite disparately. The paper argues that periods of weak domestic demand and a saving surplus over investment has left lasting traces. How could Germany find out ways to increase domestic demand, especially its public and private investment, to reduce its surplus? Political actions should focus directly on the distortions and misallocations that potentially result from an imbalance. The article discusses Bernanke’s thesis of savings glut in mature economies. As a political consequence, this means turning away from the politics of European debt limits and installing a limit on balance on current account.
{"title":"Von Brüssel Bis Berlin. Ein Kritischer Blick Auf Die Deutschen Leistungsbilanzüberschüsse (From Brussels to Berlin: A Critical Look at the German Current Account Surpluses)","authors":"Detlev Ehrig","doi":"10.2139/ssrn.3102117","DOIUrl":"https://doi.org/10.2139/ssrn.3102117","url":null,"abstract":"<b>German Abstract: </b> Deutschland verfügt über einen der weltweit höchsten Leistungsbilanzüberschüsse, gemessen am Bruttoinlandsprodukt. Damit zieht es massive Kritik seiner Handelspartner auf sich. Vom amerikani-schen Präsidenten Trump, über den Internationalen Währungsfonds bis hin zur Europäischen Kommission reichen die Vorwürfe, Deutschland gefährde mit seinen andauernden Leistungsbilanzüberschüssen die Stabilität des internationalen Handels. Das vorliegende Papier greift die kritischen internationalen Positionen auf und diskutiert mögliche Ursachen des Leistungsbilanzungleichgewichts. Schwerpunkt ist eine Auseinandersetzung mit dem Argument der Überersparnis (savings glut) als Ausdruck einer reifen Volkswirtschaft. Im Weiteren geht es um Wege zur Erhöhung der Konsumnachfrage und einer Ausweitung privater und staatlicher Investitionen. Als ein möglicher Schritt zu einer nachhaltigen Korrektur der Leistungsbilanzüberschüsse wird die Abschaffung der europäischen Schuldenbremse erörtert, die sich zugleich als eine Leistungsbilanzbremse erweisen kann. <b>English Abstract: </b> Germany has one of the highest current account surpluses in the world. This is criticised by its global trading partners and is subject to the European Macroeconomic Imbalance Procedure as well as to the IMF and the new us-government. However, this phenomenon is interpreted quite disparately. The paper argues that periods of weak domestic demand and a saving surplus over investment has left lasting traces. How could Germany find out ways to increase domestic demand, especially its public and private investment, to reduce its surplus? Political actions should focus directly on the distortions and misallocations that potentially result from an imbalance. The article discusses Bernanke’s thesis of savings glut in mature economies. As a political consequence, this means turning away from the politics of European debt limits and installing a limit on balance on current account.","PeriodicalId":18164,"journal":{"name":"Macroeconomics: National Income & Product Accounts eJournal","volume":"1 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2017-10-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89739221","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Ilya Talman, Xiao Qiao, S. Rubinow, M. Lippitz, Peter Evangelakis
The standard way to measure economic growth in an economy is through increases in Gross Domestic Product (GDP). However, because prices for digital products and services have been rapidly falling for years, the rapid growth of the digital economy is not well-captured by GDP. In this paper, we review recent efforts to measure the digital economy through Consumer Surplus (CS) and present a framework for measuring the growth of CS as a percentage of economy, along with three examples. We argue that a better way to account for progress in economy would be to combine GDP with CS.
{"title":"The New Macroeconomics of Consumer Surplus","authors":"Ilya Talman, Xiao Qiao, S. Rubinow, M. Lippitz, Peter Evangelakis","doi":"10.2139/ssrn.3042915","DOIUrl":"https://doi.org/10.2139/ssrn.3042915","url":null,"abstract":"The standard way to measure economic growth in an economy is through increases in Gross Domestic Product (GDP). However, because prices for digital products and services have been rapidly falling for years, the rapid growth of the digital economy is not well-captured by GDP. In this paper, we review recent efforts to measure the digital economy through Consumer Surplus (CS) and present a framework for measuring the growth of CS as a percentage of economy, along with three examples. We argue that a better way to account for progress in economy would be to combine GDP with CS.","PeriodicalId":18164,"journal":{"name":"Macroeconomics: National Income & Product Accounts eJournal","volume":"124 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2017-09-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75027658","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The article argues there is little evidence that World War I quickened the currents of structural change in the Australian economy. It suggests instead that the War was reinforcing of the Deakinite model of economic management that already been established by the outbreak of War. It did so by enlarging the tenet of ‘protection plus imperial preference’ that had been inscribed in the pre-War policy consensus; by strengthening the revenue and power of the central state basic to the Deakinite framework of economic governance; and by assimilating rural interests into the terms of that framework.
{"title":"Weighing the Significance of World War I for the Australian Economy","authors":"W. Coleman","doi":"10.1111/1467-8462.12224","DOIUrl":"https://doi.org/10.1111/1467-8462.12224","url":null,"abstract":"The article argues there is little evidence that World War I quickened the currents of structural change in the Australian economy. It suggests instead that the War was reinforcing of the Deakinite model of economic management that already been established by the outbreak of War. It did so by enlarging the tenet of ‘protection plus imperial preference’ that had been inscribed in the pre-War policy consensus; by strengthening the revenue and power of the central state basic to the Deakinite framework of economic governance; and by assimilating rural interests into the terms of that framework.","PeriodicalId":18164,"journal":{"name":"Macroeconomics: National Income & Product Accounts eJournal","volume":"8 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2017-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"73514619","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The questions related to cash flows deserve greater attention than the one devoted on this subject nowadays. The reasons for such a conclusion are at least two circumstances. On the one hand this is their complexity, but on the other - the fact that they are an integral part of any micro- and macro-economic activity. Studies show that these questions have long engaged for both theoreticians and practitioners. Today they are again relevant. The need for their resolution is even higher in today’s turbulent economic development. For this purpose, however, it is necessary to find a reliable tool for the presentation of cash flows. Expectations that this is possible by the information contained in more widely used national accounts (Generalised System of National Accounts - SNA 2008 and the European System of National Accounts - ESA 2010) found no practical application. This is due to the fact that there is not reliable definition nor reliable coverage of cash flows. It is obvious that in this situation there is a need to create another satellite account to the national accounts to cover this gap. This is the main objective of the proposed material. In its first part issues about the definition and presentation of cash flows in the national accounts are discussed. The second part is dedicated to the opportunities to establish new satellite account to the national accounts for cash flows. The content of the third part is about ideas how to use the new satellite account.
与现金流量有关的问题值得比目前对这一主题的关注更多。得出这一结论的原因至少有两个方面。一方面，这是它们的复杂性，但另一方面，它们是任何微观和宏观经济活动的组成部分。研究表明，这些问题长期以来一直困扰着理论家和实践者。今天，它们又有了意义。在当今动荡的经济发展中，解决这些问题的必要性甚至更高。然而，为此目的，有必要找到一种可靠的工具来列报现金流量。人们期望这可以通过更广泛使用的国民账户(国民账户通用系统- SNA 2008和欧洲国民账户系统- ESA 2010)中包含的信息来实现，但没有实际应用。这是因为现金流量没有可靠的定义，也没有可靠的覆盖范围。显然，在这种情况下，有必要为国民核算设立另一个附属帐户，以弥补这一缺口。这是拟议材料的主要目的。第一部分讨论了国民经济核算中现金流量的定义和表示问题。第二部分专门讨论为现金流量的国民账户建立新的附属账户的机会。第三部分的内容是关于如何使用新卫星账号的思路。
{"title":"Cash Flows and National Accounts (Need New Satellite Account)","authors":"Metodi Hristov","doi":"10.2139/SSRN.2988817","DOIUrl":"https://doi.org/10.2139/SSRN.2988817","url":null,"abstract":"The questions related to cash flows deserve greater attention than the one devoted on this subject nowadays. The reasons for such a conclusion are at least two circumstances. On the one hand this is their complexity, but on the other - the fact that they are an integral part of any micro- and macro-economic activity. Studies show that these questions have long engaged for both theoreticians and practitioners. Today they are again relevant. The need for their resolution is even higher in today’s turbulent economic development. For this purpose, however, it is necessary to find a reliable tool for the presentation of cash flows. Expectations that this is possible by the information contained in more widely used national accounts (Generalised System of National Accounts - SNA 2008 and the European System of National Accounts - ESA 2010) found no practical application. This is due to the fact that there is not reliable definition nor reliable coverage of cash flows. It is obvious that in this situation there is a need to create another satellite account to the national accounts to cover this gap. This is the main objective of the proposed material. In its first part issues about the definition and presentation of cash flows in the national accounts are discussed. The second part is dedicated to the opportunities to establish new satellite account to the national accounts for cash flows. The content of the third part is about ideas how to use the new satellite account.","PeriodicalId":18164,"journal":{"name":"Macroeconomics: National Income & Product Accounts eJournal","volume":"401 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2017-06-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86325407","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The paper analyzes how the choice of organizational structure leads to the best compromise between controlling behavior based on authority rights and minimizing costs for implementing high efforts. Concentrated delegation and hierarchical delegation turn out to be never an optimal compromise. If the CEO is more efficient than the division heads (i.e., the CEO's costs from exerting high effort are smaller than those of the division heads), the owner will prefer full delegation to the divisions to replace high incentive pay to the division heads by incentives based on private benefits of control. In that situation, decentralization is the optimal form of full delegation given that selfish behavior is more important than cooperation, but cross-authority delegation is optimal for cooperation being crucial. If, however, the division heads are clearly more efficient than the CEO, the owner will choose centralization given that cooperation is the dominating issue, but partial delegation if selfish behavior is crucial.
{"title":"Authority and Incentives in Organizations","authors":"M. Kräkel","doi":"10.1111/sjoe.12172","DOIUrl":"https://doi.org/10.1111/sjoe.12172","url":null,"abstract":"The paper analyzes how the choice of organizational structure leads to the best compromise between controlling behavior based on authority rights and minimizing costs for implementing high efforts. Concentrated delegation and hierarchical delegation turn out to be never an optimal compromise. If the CEO is more efficient than the division heads (i.e., the CEO's costs from exerting high effort are smaller than those of the division heads), the owner will prefer full delegation to the divisions to replace high incentive pay to the division heads by incentives based on private benefits of control. In that situation, decentralization is the optimal form of full delegation given that selfish behavior is more important than cooperation, but cross-authority delegation is optimal for cooperation being crucial. If, however, the division heads are clearly more efficient than the CEO, the owner will choose centralization given that cooperation is the dominating issue, but partial delegation if selfish behavior is crucial.","PeriodicalId":18164,"journal":{"name":"Macroeconomics: National Income & Product Accounts eJournal","volume":"49 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2017-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85454900","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In this paper, we study one‐person–one‐vote parliamentary elections where voters care both about the winner of elections and about the composition of the parliament. Parties enter the parliament if and only if their vote share exceeds some predetermined threshold. We show that equilibria generically exist in which all parties obtain a non‐degenerate vote‐share and, perhaps more importantly, we show that the size of the electoral threshold acts as a coordination device, which crucially affects the win prospects of the Condorcet winner party. In particular, we argue that the win prospects of the Condorcet winner party decrease with the size of the entry threshold.
{"title":"Electoral Thresholds as Coordination Devices","authors":"Matías Núñez, Dimitrios Xefteris","doi":"10.1111/sjoe.12175","DOIUrl":"https://doi.org/10.1111/sjoe.12175","url":null,"abstract":"In this paper, we study one‐person–one‐vote parliamentary elections where voters care both about the winner of elections and about the composition of the parliament. Parties enter the parliament if and only if their vote share exceeds some predetermined threshold. We show that equilibria generically exist in which all parties obtain a non‐degenerate vote‐share and, perhaps more importantly, we show that the size of the electoral threshold acts as a coordination device, which crucially affects the win prospects of the Condorcet winner party. In particular, we argue that the win prospects of the Condorcet winner party decrease with the size of the entry threshold.","PeriodicalId":18164,"journal":{"name":"Macroeconomics: National Income & Product Accounts eJournal","volume":"8 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2017-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79651314","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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