Issue Unbundling Via Citizens' Initiatives

39 Pages Posted: 12 Dec 2000 Last revised: 18 Dec 2022

See all articles by Timothy J. Besley

Timothy J. Besley

London School of Economics & Political Science (LSE) - Department of Economics; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Stephen Coate

Cornell University - Department of Economics; National Bureau of Economic Research (NBER)

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Date Written: December 2000

Abstract

The role of citizens' initiatives figures prominently in contemporary debates on constitutional change. A basic question is why are initiatives necessary in a representative democracy where candidates must already compete for the right to control policy? This paper offers one answer to this question. In a representative democracy, the bundling of issues together with the fact that citizens have only one vote, means that policy outcomes on specific issues may diverge far from what the majority of citizens want. In such circumstances, allowing citizens to put legislation directly on the ballot, permits the unbundling' of these issues, which forces a closer relationship between policy outcomes and popular preferences. To the extent that it is considered socially undesirable for outcomes on specific issues to stray too far from what the majority wants, this creates a role for citizens' initiatives.

Suggested Citation

Besley, Timothy J. and Coate, Stephen, Issue Unbundling Via Citizens' Initiatives (December 2000). NBER Working Paper No. w8036, Available at SSRN: https://ssrn.com/abstract=253144

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