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Democracy And Partisanship

Median voter models are very simple to use, but as the Robin Hood paradox suggests, they do not provide much leverage on explaining the observed variance in redistributive politics. Power resources theory points to one potential source of such variation that has been subject to much research: government partisanship. If centerleft governments simultaneously promote pre-fisc income equality and redistribution, partisanship may not only explain distributive outcomes but solve the Robin Hood paradox.1 If partisanship is important in explaining distributive outcomes, we would expect equality and redistribution to go hand in hand. Partisanship may also explain why corporatist institutions are not always conducive to good economic performance. In Lange and Garrett’s (1985) well-known model of economic growth, “encompassing” unions that organize all or most workers are not likely to restrain wages if right partisan governments are in power that are not attentive to the long-term interests of laborAs I discuss in Section 5, this idea of “congruence” between policies and institutions is an important topic for contemporary models of capitalist institutions. For partisanship to matter, the median voter theorem must be systematically violated, so there must be some explanation for why this should be the case. It is by no means obvious. Although Downs only applied his argument to majoritarian twoparty systems, the median voter theorem also applies to multiparty systems where the median legislator can make take-it-or-leave-it proposals. Since no majority can be formed without the support of the median legislator, those proposals will become government policy. In simple unidimensional models of government formation the government always includes the party with the median legislator and does not even need a majority to govern since no viable alternatives can be formed (Laver and Schofield 1990). Yet, the comparative evidence seems to imply that partisanship matters (see, for example, Hicks and Swank 1992; Iversen 1998; Huber and Stephens 2001; Cusack 1997; Allan and Scruggs 2004; Kelly 2005; Kwon and Pontusson 2005). One explanation is suggested by Wittman’s (1973) model of probabilistic voting.2 If two parties represent constituencies with distinct interests on any set of issues, and if they face uncertainty about the election outcome, the platforms that maximize the implementation of the parties’ preferred policies will be away from the median.
     Since their expected utility is the product of the probability of winning times the proximity of policies to parties’ ideal point, parties trade off a lower probability of winning for a policy that is closer to their preference. The Wittman model has found wide application in the study of two-party systems, where one of its attractive features is that it can handle multidimensional spaces (more on this below). Another explanation for partisanship is that political parties, to be electorally successful, have to appeal to core constituents who provide the money and activists required to run effective electoral campaigns (Hibbs 1977; Schlesinger 1984; Kitschelt 1994; Aldrich 1993, 1995). Aldrich (1983) has formalized this idea in a Downsian model with party activists in which party leaders exchange policy influence to relatively extreme core constituents for unpaid work during campaigns.3 The logic is illustrated by the American primary systemwhere successful presidential candidates first have to win the support of the parties’ core constituents before they can contest the general election. In the general election they have an incentive to moderate their image to appeal to the median voter, but since they were chosen as candidates on different platforms, the perception among voters of real policy differences is accurate. Aldrich’s amended Downsian model raises a critical issue of commitment in politics—an issue that is also important for understanding partisanship. If the winning electoral platform in an election is the median voter preference, but candidates represent partisan constituencies, how can their commitment to the median voter be credible? Downs largely skirted this issue by assuming that party platforms had to be consistent over time, but it is now standard to assume that such commitments cannot be credible (Persson and Tabellini 1999, 2000). In modern political macroeconomics, for example, governments have a short-term incentive before elections to make the economy look better by using inflationary policies, even as such policies are unsustainable and have deleterious long-run effects (Alesina, Cohen, and Roubini 1992; Franzese 2002; Adolph 2005; Clark 2003).4 This creates room for partisan politics.5 “Citizen-candidates” models takes this idea to its logical conclusion by assuming that candidates cannot commit to anything other than their own preferred policies (Osborne and Slivinski 1996; Besley and Coate 1997).
     With two candidates and costs of running, the equilibrium is away from the median voter because otherwise one citizen would not find it worthwhile to enter the race (why run if someone is already representing you?). With strategic voting this divergence can be quite large because voters may not want to switch from an existing candidate to a more moderate entrant in the fear that this may cause the least preferred candidate to win. Turning fromparty competition to government formation, new bargaining models also do not bear out the idea that the median legislator can dictate policy. If there is real bargaining taking place, Rubinstein bargaining theory essentially implies that parties will split their policy differences. The threat to break off negotiations and initiate bargaining with another party cannot easily be used by the median party to get its way. The reason is that if there are any costs of switching (which may simply be the cost of a delay), the new bargaining partner has no incentive to offer a bargain that is better than the original minus the cost of switching.6 As long as parties have different policy preferences, as in the citizen-candidate model, governments will therefore be away from the median. But while there are compelling reasons why partisanship matters, a critical issue that has largely been skirted is why some countries are dominated by centerleft governments and others by center-right governments. In the absence of such dominance we may get partisan political business cycles, as argued by Alesina and others (Alesina, Cohen, and Roubini 1992), but partisanship could no longer explain persistent cross-national differences in policies and outcomes.Nor could partisanship serve as a credible commitment mechanism as it does in the Lange–Garrett model (since partisanship would change in the future).
     In fact, government partisanship does vary significantly across democracies (see Powell 2002; Iversen and Soskice 2002), and much of the evidence for the importance of partisanship is cross-national. Rather surprisingly, most of the literature also fails to distinguish between the preferences of parties and the preferences of voters. Observed policy differences between left and right governments could be due to either. There are methodological fixes to this problem—such as comparing the ideological composition of the government to that of the legislature, or focusing on “natural experiments” where the outcome approximates a random assignment of the partisan “treatment” (say, in very close elections)—but we also need a theory of voter preferences. Since voters have an incentive to be “rationally ignorant,” as argued by Downs many years ago, it is not really satisfactory to assume that parties simply reflect the interests of citizens. Partisan models must also explain how interests are defined and become common knowledge—a major agenda for future research..
 

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