Designing Checks and Balances

@article{Dragu2014DesigningCA,
  title={Designing Checks and Balances},
  author={Tiberiu Dragu and Xiaochen Fan and James H. Kuklinski},
  journal={Institutions \& Transition Economics: Political Economy eJournal},
  year={2014}
}
Essential to the Madisonian conception of checks and balances is the division of policy-making authority among multiple actors such that each can veto proposed changes in policy. We use a mechanism design approach to analyze checks and balances institutions. We show that checks and balances institutions in which the most preferred policy of the more moderate player is the unique equilibrium outcome are the only checks and balances institutions that are strategy-proof, efficient, and responsive… Expand
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TLDR
It is shown that, irrespective of legislators’ patience and the initial division of resources, policy eventually gets arbitrarily close to full appropriation by the veto player; that increasing legislators” patience or decreasing the vetoPlayer’s ability to set the agenda makes convergence to this outcome slower; and that the vetoed player supports reforms that decrease his allocation. Expand
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