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Bargaining over Governments in a Stochastic Environment
Journal article   Peer reviewed

Bargaining over Governments in a Stochastic Environment

Antonio Merlo
The Journal of political economy, v 105(1), pp 101-131
01 Feb 1997
url
https://doi.org/10.1086/262067View
Published, Version of Record (VoR) Open

Abstract

Bargaining Deadlines Economic models Inflation rates Modeling Parametric models Parliamentary system Parliaments Political economy Political parties
In this paper, I structurally estimate a stochastic bargaining model of government formation in a multiparty parliamentary democracy, and I conduct policy experiments to evaluate the effects of changes in the bargaining procedure. I show that the model fits well data on the duration of negotiations and government durations in postwar Italy. Also, I show that changes in the proposer selection process would not affect either the duration of negotiations or government durations, whereas the imposition of a strict deadline would in general reduce the incentives to delay agreement as well as government durations.

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Economics
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