Uncertainty, electoral Incentives and political myopia

In this paper, we study the determinants of political myopia in a rational model of electoral accountability where the key elements are informational frictions and uncertainty. We build a framework where political ability is ex-ante unknown and policy choices are not perfectly observable. On the one hand, elections improve accountability and allow to keep well-performing incumbents. On the other, politicians invest too little in costly policies with future returns in an attempt to signal high ability and increase their reelection probability. Contrary to the conventional wisdom, uncertainty reduces political myopia and may, under some conditions, increase social welfare. We use the model to study how political rewards can be set so as to maximise social welfare and the desirability of imposing a one-term limit to governments. The predictions of our theory are consistent with a number of stylised facts and with a new empirical observation documented in this paper: aggregate uncertainty, measured by economic volatility, is associated to better ...scal discipline in a panel of 20 OECD countries.

Uncertainty, electoral incentives and political myopia

We study the determinants of political myopia in a rational model of electoral accountability where the key elements are informational frictions and uncertainty. We build aframework where political ability is ex-ante unknown and policy choices are not perfectlyobservable. On the one hand, elections improve accountability and allow to keep well-performing incumbents. On the other, politicians invest too little in costly policies withfuture returns in an attempt to signal high ability and increase their reelection probability.Contrary to the conventional wisdom, uncertainty reduces political myopia and may, undersome conditions, increase social welfare. We use the model to study how political rewardscan be set so as to maximise social welfare and the desirability of imposing a one-term limitto governments. The predictions of our theory are consistent with a number of stylised factsand with a new empirical observation documented in this paper: aggregate uncertainty, measured by economic volatility, is associated to better fiscal discipline in a panel of 20 OECDcountries.

Los Efectos del sistema electoral europeo en España: los partidos políticos de ámbito no estatal

A lo largo de este artículo se analizan los efectos del sistema electoral europeo en España sobre los partidos políticos de ámbito no estatal. Por un lado, se estudia el funcionamiento de la normativa electoral española, subrayando la sobrerepresentación de unos partidos políticos y la infrarepresentación de otros en función del ámbito territorial organizativo de la formación política. Por otro lado, se presentan datos sistemáticos y comparados que demuestran esta distorsión de la representación política –fruto de la normativa electoral-, y dibujamos la estrategia electoral que los partidos políticos afectados negativamente desarrollan: las coaliciones electorales. Pero, ¿en base a qué criterios se organizan tales coaliciones electorales? El enfoque multivariable –la circunscripción, la magnitud electoral y el número de eurodiputados españoles- nos va permitir responder a esta y otras preguntas. El objetivo es ahondar en el debate sobre la normativa electoral en la arena política europea.

El Comportament electoral dels espanyols al referèndum de la Constitució Europea

Aquest paper tracta dels resultats del referèndum sobre la Constitució Europea que es va celebrar a Espanya el 20 de febrer de 2005. Hi trobem un panorama general del context en el qual se celebrà la consulta, i, a través de l’anàlisi d’enquestes postelectorals, analitza la composició del vot afirmatiu i del negatiu, la posició dels diferents partits polítics i el comportament electoral dels diversos actors socials, dividits per classe social, religió, edat, gènere, territori, etc. També hi ha una anàlisi de l’abstenció i de la participació a Espanya en aquest cas.

Are one factor logarithmic volatility models useful to fit the features of financial data? An application to microsoft data.

This paper provides empirical evidence that continuous time models with one factor of volatility, in some conditions, are able to fit the main characteristics of financial data. It also reports the importance of the feedback factor in capturing the strong volatility clustering of data, caused by a possible change in the pattern of volatility in the last part of the sample. We use the Efficient Method of Moments (EMM) by Gallant and Tauchen (1996) to estimate logarithmic models with one and two stochastic volatility factors (with and without feedback) and to select among them.

Forecasting volatility using a continuous time model

This paper evaluates the forecasting performance of a continuous stochastic volatility model with two factors of volatility (SV2F) and compares it to those of GARCH and ARFIMA models. The empirical results show that the volatility forecasting ability of the SV2F model is better than that of the GARCH and ARFIMA models, especially when volatility seems to change pattern. We use ex-post volatility as a proxy of the realized volatility obtained from intraday data and the forecasts from the SV2F are calculated using the reprojection technique proposed by Gallant and Tauchen (1998).

The effect of candidate quality on electoral equilibrium: an experimental study

When two candidates of different quality compete in a one dimensional policy space, the equilibrium outcomes are asymmetric and do not correspond to the median. There are three main effects. First, the better candidate adopts more centrist policies than the worse candidate. Second, the equilibrium is statistical, in the sense that it predicts a probability distribution of outcomes rather than a single degenerate outcome. Third, the equilibrium varies systematically with the level of uncertainty about the location of the median voter. We test these three predictions using laboratory experiments, and find strong support for all three. We also observe some biases and show that they canbe explained by quantal response equilibrium.

El Sistema electoral a Austràlia: convivència en la complexitat democràtica

L’objectiu d’aquestes pàgines és descriure el desenvolupament del sistema electoral a Austràlia des de la perspectiva que comporta tant la seva complexitat com flexibilitat. Una complexitat a què s’ha acostumat el ciutadà australià fruit de la naturalesa federal del país. En comptes que les modificacions en les regles del joc democràtic facin perillar la credibilitat del poder polític, Austràlia sempre ha conservat una ferma evolució política a partir dels eixos de buscar la millor representació ciutadana. Aquesta diversitat i sofisticació constant no han portat a la ciutadania a una desinhibició de les regles democràtiques, sinó que s’ha combinat amb una participació electoral obligada dels ciutadans que els implica directament amb el seu sistema polític.