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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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Publisher:
Department of Economics (University of Oxford)
Series:
Discussion paper series
Publication date:
2010-08-01
Language:
English
UUID:
uuid:fcb068da-ac6e-4fd8-b427-8e03d1fe9636
Local pid:
oai:economics.ouls.ox.ac.uk:14999
Deposit date:
2011-08-16

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