Coalition Governments in a Model of Parliamentary Democracy
42 Pages Posted: 13 Jun 2006
Date Written: June 2006
We analyze the relative importance of party ideology and rents from office in the formation of coalitions in a parliamentary democracy. In equilibrium, the types of coalitions that are formed may be minimal winning, minority or surplus and they may be deologically 'disconnected'. The coalitions that form depend upon the relative importance of rents of office and seat shares of the parties. If rents are high, governments cannot be surplus. With low rents or the formateur close to the median, minority governments occur for a wider ideological dispersion. Further, there is a non-monotonic relationship between connectedness of coalitions and rents.
Keywords: Coalitions, Ideology, Rents
JEL Classification: C72, D72, H19
Suggested Citation: Suggested Citation