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- W3138403141 abstract "Why do politicians sometimes pursue policies with uncertain outcomes? We present a model in which politicians are unable to pre-commit to a status quo policy, and where investors and voters face a conflict over the division of output. Politicians may deviate from the status quo and pursue risky policy gambles in order to raise aggregate output to satisfy voters. These policy gambles may have a populist and self-fulfilling flavour: they can command electoral support despite being against voters' best interests. We analyse how consensus-building institutions eliminate the gamble equilibrium and enhance voter welfare. We interpret the United Kingdom's decision to leave the European Union through the lens of the model." @default.
- W3138403141 created "2021-03-29" @default.
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- W3138403141 date "2020-03-18" @default.
- W3138403141 modified "2023-10-03" @default.
- W3138403141 title "Leaping into the Dark: A Theory of Policy Gambles" @default.
- W3138403141 hasPublicationYear "2020" @default.
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