This paper proposes that reforms by vote-seeking governments and the existence of reform-adverse voters are logically compatible. This results from a commitment problem on the part of voters. Due to economic voting voters cannot credibly commit to reelect a non-reforming government during a recession. The empirical implication of this voter commitment mechanism is that governments only adopt visible welfare-program reforms during economic lows, which is what the empirical political-economic literature has established.
|Place of Publication||Tilburg|
|Number of pages||28|
|Publication status||Published - 2009|
|Name||CentER Discussion Paper|
- Political Economy