Rules Transparency and Political Accountability
IGIER Universita Bocconi Working Paper No. 147
37 Pages Posted: 30 Mar 1999
Date Written: December 1998
Allocative and redistributive rules in the public sector are often less contingent on available information than normative theory would suggest. This paper offers a political economy explanation. Under different rules, even if the observable outcomes of policies remain the same, the informational content which can be extracted by these observations is different. Simpler rules are more transparent because they allow citizens to gain more information on politicians. Since there are limits to what voters can observe, this may be a relevant insight into the functioning of the political system.
JEL Classification: H10
Suggested Citation: Suggested Citation