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Dynamic government performance: honeymoons and crises of confidence

Abstract:

We model the interplay between a government's performance, its expected lifetime, and the confidence it enjoys. Here, "confidence" can be broadly interpreted as the government's popularity, the size of its parliamentary majority, its reserve of talent, or other factors. Confidence evolves in response to performance, and if it evaporates then the government falls. We analyze how confidence influences ministers' behavior. A minister's tenure is determined by the performance of both himself and ...

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Publication status:
Published

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Publisher:
University of Oxford
Series:
Department of Economics Discussion Paper Series
Publication date:
2010-08-01
Paper number:
500
Keywords:
Pubs id:
1143923
Local pid:
pubs:1143923
Deposit date:
2020-12-15

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