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- Title
TRANSACTION COSTS AND COALITION STABILITY UNDER MAJORITY RULE.
- Authors
Johnson, Ronald N.; Libecap, Gary D.
- Abstract
Government program allocations are more stable and more equally shared than theory predicts. Although various explanations have been offered, we emphasize the high transaction costs of political negotiations and coalition enforcement. Cycling predictions ignore the cost to politicians of repeatedly forming coalitions and neglect the opportunity costs of failed coalitions and the loss of related government programs that bring valuable constituent benefits. Because of these costs, Congress relies on coalitions larger than the minimum necessary to enact a program, adopts relatively egalitarian programmatic sharing rules, and resists efforts to change those allocations.
- Subjects
GOVERNMENT programs; DOMESTIC economic assistance; TRANSACTION costs
- Publication
Economic Inquiry, 2003, Vol 41, Issue 2, p193
- ISSN
0095-2583
- Publication type
Article
- DOI
10.1093/ei/cbg001