Transcription of Federalism and Incentives for Success of Democracy
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Federalism and Incentives for Success of Democracy
Quarterly Journal of Political Science, 2006, 1: 3 23 Federalism and Incentives for Successof DemocracyRoger B. MyersonDepartment of Economics, University of Chicago, 1126 East 59th Street, Chicago,IL 60637. E-mail: and failure of Democracy are interpreted as different equilibria of adynamic political game with cost of changing leadership and incomplete infor-mation about politicians virtue. Unitary Democracy can be frustrated when votersdo not replace corrupt leaders, because any new leader would probably also governcorruptly. However, federal Democracy cannot be consistently frustrated at bothnational and provincial levels, because provincial leaders who govern responsiblycould build reputations to become contenders for higher national office.
Quarterly Journal of Political Science, 2006, 1: 3–23 Federalism and Incentives for Success of Democracy Roger B. Myerson Department of Economics, University of Chicago, 1126 East 59th Street, Chicago,
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