nep-cdm New Economics Papers
on Collective Decision-Making
Issue of 2018‒07‒09
sixteen papers chosen by
Stan C. Weeber, McNeese State University

  1. Voting on behalf of a future generation: A laboratory experiment By Yoshio Kamijo; Yoichi Hizen; Tatsuyoshi Saijo; Teruyuki Tamura
  2. Representation of the people: Franchise extension and the "Sinn Féin election" in Ireland, 1918 By De Bromhead, Alan; Fernihough, Alan; Hargaden, Enda
  3. Do Electoral Rules Matter for Female Representation? By Paola Profeta; Eleanor Woodhouse
  4. Transnationalizing democracy properly: Principles and rules for granting consociated citizens voting rights and partisan representation in the parliaments of nation states By Blatter, Joachim
  5. Euroscepticism and EU Cohesion Policy: The Impact of Micro-Level Policy Effectiveness on Voting Behaviour By Julia Bachtrögler; Harald Oberhofer
  6. Sustainability transitions in local communities: District heating, water systems and communal housing projects By Köhler, Jonathan Hugh; Hohmann, Claudia; Dütschke, Elizabeth
  7. Cohesive Institutions and Political Violence By Fetzer, Thiemo; Kyburz, Stephan
  8. Researching and marketing to consumption collectives By Matthew Hawkins
  9. Crisis and Extremism: Can a Powerful Extreme Right Emerge in a Modern Democracy? Evidence from Greece’s Golden Dawn By Costas Roumanias; Spyros Skouras; Nicos Christodoulakis
  10. Women's political participation and intrahousehold empowerment: Evidence from the Egyptian Arab Spring By Olivier Bargain; Delphine Boutin; Hugues Champeaux
  11. Implementation by vote-buying mechanisms By Eguia, Jon; Xefteris, Dimitrios
  12. International Environmental Agreements and Trading Blocks - The Impact of Heterogeneity among Countries on Stability By Effrosyni Diamantousi; Eftichios Sartzetakis; Stefania Strantza
  13. When does team remuneration work? An experimental study on interactions between workplace contexts By Bartke, Simon; Gelhaar, Felix
  14. Decentralized Terrorism and Social Identity By Eswaran, Mukesh
  15. I Am Ashamed of... vs I Am Proud of...: History as an Accusation and Justification in Public Political Activities By Arkhipova, Alexandra; Radchenko, Darya
  16. Grants-in-aid and the prospect of re-election: The impact of EU funds on mayoral elections in Poland By Monika Banaszewska; Ivo Bischoff

  1. By: Yoshio Kamijo (School of Economics and Management, Kochi University of Technology); Yoichi Hizen (School of Economics and Management, Kochi University of Technology); Tatsuyoshi Saijo (School of Economics and Management, Kochi University of Technology); Teruyuki Tamura (Kyoto College of Economics)
    Abstract: Although future generations are affected by on-going economic, social, and environmental conditions, the current political process allows present-day voters to ignore future generations’ needs. This paper investigates a new voting rule wherein some people are given extra votes to serve as proxies for future generations (or individuals close to future generations). We predict that this voting scheme affects the voting behavior of those who do not receive an extra vote (i.e., single-ballot voters) because they are less likely to become a pivot, while proxy voters are expected to behave in support of the future generation. To test this prediction, we compare three scenarios wherein single-ballot voters would cast a vote: (a) one-voter-one-vote scenario wherein all voters cast only a single ballot; (b) a standard proxy-voting scenario wherein other voters cast two ballots, and the second vote is to cast for the benefit of a future generation; and (c) a non-proxy-voting scenario wherein other voters cast two ballots with no explanation for the second vote. Single-ballot voters are less inclined to vote for the future-oriented option in the non-proxy-voting scenario than in the one-voter-one-vote scenario. However, the results show that this reaction can be mitigated if the second vote is explained as being cast on behalf of the future generation.
    Keywords: Voting rule, proxy vote, Demeny voting, future generation, intergenerational equity
    Date: 2018–06
  2. By: De Bromhead, Alan; Fernihough, Alan; Hargaden, Enda
    Abstract: Electoral reforms in 1918 nearly tripled the number of people eligible to vote in Ireland. Following the reforms - the largest franchise extensions in UK history - the previously obscure Sinn Féin party secured 73 of Ireland's 105 seats, an outcome that presaged a guerrilla war and ultimately independence from the United Kingdom. This paper examines the relationship between the franchise extension and the election results. We find little evidence of a connection between the two. New female voters appear less likely to have supported Sinn Féin. New male voters were slightly more likely to vote for Sinn Féin, but the magnitude of this effect was small and statistically insignificant. In fact, non-voting appears particularly high for both groups of new voters. Our results suggest that the extension of the franchise cannot explain Sinn Féin's victory. We conclude their electoral success was more likely driven by a change of heart on behalf of the Irish electorate, rather than a change in its composition.
    Keywords: Voting,Elections,Ireland,Sinn Féin
    JEL: D72 N44 N94
    Date: 2018
  3. By: Paola Profeta; Eleanor Woodhouse
    Abstract: How do electoral rules affect the representation of women? We collect panel data on the universe of Italian politicians from all levels of government over the period 1987-2013 and obtain a complete picture of the career paths of male and female politicians across the whole arc of their careers in public office. We use our unique dataset to analyse the effects on female political representation of an Italian reform which, in 2005, changed the electoral rule for national elections from (mostly) majoritarian to proportional, but did not affect sub-national level elections. We find that proportional electoral rules favour the election of women. We propose a new channel through which this result is obtained, related to the different nature of political competition in the two electoral systems: under proportional rules, parties place women less frequently in competitive seats. This is consistent with the fact that proportional systems value gender diversity more than majoritarian ones, while majoritarian systems rely on head-to-head electoral races, which are not gender neutral. We also find that electoral rules have weaker effects on female representation in geographical areas where traditional gender roles are dominant.
    Keywords: electoral systems, majoritarian, proportional, difference-in-differences
    JEL: H70
    Date: 2018
  4. By: Blatter, Joachim
    Abstract: How can we democratically govern a world of high levels of cross border flows and transnational (inter)dependencies? I offer a new approach that focusses on the horizontal expansion of national demoi and on granting "consociated citizens" voting rights and partisan representation in the parliaments of nation states. The first two sections point to failed attempts to democratize a vertically layered system of governance, and to pitfalls of proposals to strengthen the role of national parliaments in inter- and supranational politics. Afterwards, I turn to the horizontal alternative. In the first major section, I introduce membership principles that provide the groundwork for a horizontal and differentiated expansion of national demoi. I start with pointing to the fact that the spread of multiple citizenship is leading to an emerging system of horizontally overlapping demoi and that we should realize the potential, but also the need to explicitly constitutionalize such a system. Next, I show how fuzzy set theory paves the way to reconceptualize political inclusion in such a way that inclusion can take place in the form of graded membership. Furthermore, in order to transform these conceptual innovations into a normatively adequate reform proposal, I rehabilitate and redefine proportional equality and proportional representation. Finally, I demonstrate how the realignment of the boundary of the kratos and the boundary of the demos of nation states can be organized in a "demoicratic" way that includes two steps: First, representatives of the peoples of two or more nation states sign "joint declarations of interdependence" and recognize each other reciprocally as "consociated peoples and states." Second, individual members of consociated peoples sign "declaration of interest and identification," and thereby register as "consociated citizens" of the other participating nation states. In the second major section, I present electoral principles that make a system of horizontally overlapping transnational democracies feasible and productive for dealing with the challenges of an (inter)dependent world. These principles aim at strengthening "responsible party government," the preeminent form of democratic governance within liberal nation states that is currently threatened by the mutually enforcing trends towards international technocracy and national populism.
    Keywords: transnational democracy,citizenship,voting,parties and representation,horizontally overlapping and graded membership in national demoi,Transnationale Demokratie,Bürgerschaft,Wahlen,Parteien und Repräsentanten,horizontal überlappende und abgestufte Mitgliedschaften in den politischen Gemeinschaften von Nationalstaaten
    Date: 2018
  5. By: Julia Bachtrögler (WIFO); Harald Oberhofer (WIFO)
    Abstract: This study investigates whether there is a link between the successful implementation of European co-hesion policy and the voters' attitudes towards the EU. Using the French presidential elections in 2017 as a case study, we do not solely consider regional funds expenditures but also its induced effects in a re-gion as further potential determinant of pro-European or eurosceptic voting behaviour. In order to measure the effectiveness of EU structural funds and Cohesion Fund assignment, firm-level employ-ment effects in French NUTS-2 regions stemming from project allocation during the multi-financial framework 2007-2013 are estimated. The obtained average treatment effects are, in a next step, used together with other regional characteristics to capture the citizens' perceived exposure to the EU in an empirical voting model for the French presidential election in 2017. The estimation results reveal a sig-nificant negative relationship between the effectiveness of EU funds allocation and the vote share of the eurosceptic candidate Marine Le Pen.
    Date: 2018–06–20
  6. By: Köhler, Jonathan Hugh; Hohmann, Claudia; Dütschke, Elizabeth
    Abstract: Sustainability transitions take place across geographical and political levels. Services such as energy supply, water supply and wastewater management or housing are part of daily life have to be provided at the district level within larger urban governance structures or by smaller rural administrations. However, relatively little attention has been given to the analysis of these local structures. This paper reviews case studies of niches in the areas of district heat networks, communal housing projects for the elderly and sustainable water/wastewater management. The paper addresses the following research questions: 1. What are the similarities and differences in the case study's drivers and barriers that have arisen between the fields of action and what conclusions can be drawn from these insights in order to maximize success factors or to minimize obstacles in advance? 2. What are the key factors for transition, also with regard to the synergies of the three fields of action? 3. What is the stage of development of the niches? Are they in a transition process or not? District heat networks are established as a niche, but given the current policy and financial environment are developing very slowly. Communal housing projects are a small part of the overall housing market, but the niche is stable and growing. Waste water separation and new rain water management systems are developing as niches, but the centralised management of decentralised waste water treatment has so far only been adopted in a few cases. These niches are all critically dependent on support from the district authorities. High complexity and inconsistency in legal frameworks, and missing financial re-sources present significant barriers for innovative niche projects. They usually require new, specific financial support to enable the change from conventional systems. These groups face a difficult period of developing their expertise in planning and management and often require financial support and advice. Consultancy networks - if available - have been shown to be important in enabling such pro-jects to establish themselves. As all three case studies rely on infrastructure components, stakeholders need to consider windows of opportunities for innovation. Acceptance and trust are additional factors influencing the projects. Therefore, constructive and goal-oriented "interaction" and communication between the stakeholders on district and project level are key factors for success. It is important to share data and information to guarantee an early integration of important stakeholders, including the public. Projects in all three areas have the ambition of improved sustainability, although data on the actual impact is limited. The housing projects can be argued to contribute to sustainability in all three areas: environmental, social and economic. The district heat networks are supposed to reduce environmental impacts compared to current systems, but there was insufficient monitoring information to be certain that this is the case. The alternative water management systems all make a contribution to environmental sustainability and can be shown to be economically viable. If successful, projects in all three sectors can strengthen local social structures. Economic sustainability is a necessary condition for the success of projects in all three areas and this requires financial support and resources that are not available through the conventional housing, energy or water services market institutions. While projects on district and household level are fundamental to a sustainability transition, efforts for upscaling their impacts (Luederitz et al. 2017) are just as important. The challenges for actors on local to global scale are to learn from different narratives and adapt different perspectives, build unconventional alliances and collaborations to implement innovative, creative and intelligent solutions for a sustainability transition on a larger scale (Luederitz et al. 2017; Wittmayer et al. 2016; Brown et al. 2013).
    Date: 2018
  7. By: Fetzer, Thiemo (University of Warwick); Kyburz, Stephan (Center for Global Development)
    Abstract: Can institutionalized transfers of resource rents be a source of civil conflict? Are cohesive institutions better in managing distributive conflicts? We study these questions exploiting exogenous variation in revenue disbursements to local governments together with new data on local democratic institutions in Nigeria. We make three contributions. First, we document the existence of a strong link between rents and conflict far away from the location of the actual resource. Second, we show that distributive conflict is highly organized involving political militias and concentrated in the extent to which local governments are non-cohesive. Third, we show that democratic practice in form having elected local governments significantly weakens the causal link between rents and political violence. We document that elections (vis-a-vis appointments), by producing more cohesive institutions, vastly limit the extent to which distributional conflict between groups breaks out following shocks to the available rents. Throughout, we confirm these findings using individual level survey data.
    Keywords: conflict ; ethnicity ; natural resources ;political economy ; commodity prices
    JEL: Q33 O13 N52 R11 L71
    Date: 2018
  8. By: Matthew Hawkins (ICN Business School, CEREFIGE - Centre Européen de Recherche en Economie Financière et Gestion des Entreprises - UL - Université de Lorraine)
    Abstract: Consumer researchers have identified a handful of consumption collectives, such as consumption tribes, brand communities, and communities of practice. A consumption collective is a group of consumers who share consumption characteristics. Despite the use of participant screens in other research domains, published consumption collective research rarely reports on participant screens demonstrating their participants are actual members of the specific collective under investigation. Without participant screens researchers may mistakenly attribute conflicts over heterogeneous resources to intra-collective competition when the source may be inter-collective competition. This research demonstrates that consumer researchers can implement a short survey during field interviews as a participant screen. The article concludes by suggesting that marketing strategies and branding messages should be adjusted according to the individual consumer's consumption collective membership status.
    Keywords: Consumption collectives, Brand community, Communities of practice, Community marketing, Qualitative research
    Date: 2018
  9. By: Costas Roumanias; Spyros Skouras; Nicos Christodoulakis
    Abstract: By local and international standards, Golden Dawn (GD) is at the far end of Extreme Right, yet it has emerged as Greece’s third largest party, gaining most of its electoral support within months, in early 2012. Its electoral rise has been attributed to the severe economic crisis the country had previously and since experienced. We investigate this remarkable case study econometrically, using both panel vote-share, and individual vote-intent regressions. Dramatic changes in parameters provide congruent evidence that GD’s success was due to a change in voter behaviour, rather than changes in individual characteristics or contextual conditions. Around one third of this change was due to GD’s success in taking ownership of the previously ownerless niche issues of immigration and law-and-order; the remaining change is attributed to its success in attracting financially distressed voters and voters fitting a typical Extreme Right demographic. Auxiliary evidence suggests this change was driven by a massive realignment of voters fleeing mainstream parties, after a coalition government imposed harsh austerity measures.
    Date: 2018–06
  10. By: Olivier Bargain (UB - Université de Bordeaux); Delphine Boutin (CERDI - Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne - UCA - Université Clermont Auvergne - CNRS - Centre National de la Recherche Scientifique); Hugues Champeaux (CERDI - Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne - UCA - Université Clermont Auvergne - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Egyptian women have played an unprecedented role in the Arab Spring democratic movement, possibly changing women’s perception about their own rights and role. We question whether these events have translated into better outcomes within Egyptian households. We conjecture that potential changes must have been heterogeneous and depended on the local intensity of protests and women’s participation over 2011-13. We exploit the geographical heterogeneity along these two margins to conduct a double difference analysis using data surrounding the period. We find a significant improvement in women’s final say regarding decisions on health, socialization and household expenditure, as well as a decline in the acceptation of domestic violence and girls’ circumcision, in the regions most affected by the protests. This effect is not due to particular regional patterns or pre-existing trends in empowerment. It is also robust to alternative treatment definitions and confirmed by triple difference estimations. We confront our main interpretation to alternative mechanisms that could have explained this effect.
    Keywords: Arab Spring, Revolutions, Gender, Empowerment, Egypt.
    Date: 2018–05–31
  11. By: Eguia, Jon (Michigan State University, Department of Economics); Xefteris, Dimitrios (University of Cyprus)
    Abstract: Simple majority voting does not allow preference intensities to be expressed, and hence fails to implement choice rules that take them into account. A vote-buying mechanism, instead, permits preference intensities to be revealed since each agent can buy any quantity of votes x to cast for an alternative of her choosing at a cost c(x) and the outcome is the most voted alternative. In the context of binary decisions, we characterize the class of choice rules implemented by vote-buying mechanisms. Rules in this class can assign any weight to preference intensities and to the number of supporters for each alternative.
    Keywords: implementation; mechanism design; vote-buying; social welfare; utilitarianism; quadratic voting
    JEL: D61 D71 D72
    Date: 2018–06–26
  12. By: Effrosyni Diamantousi (Department of Economics, Concordia University); Eftichios Sartzetakis (Department of Economics, University of Macedonia); Stefania Strantza (Department of Economics, Concordia University)
    Abstract: The present paper examines the stability of self-enforcing International Environmental Agreements (IEAs) among heterogeneous countries in a two stage emission game. In the first stage each country decides whether or not to join the agreement, while in the second stage the quantity of emissions is chosen simultaneously by all countries. We use quadratic benefit and environmental damage functions and assume k types of countries that differ in their sensitivity to the global pollutant. We find that the introduction of heterogeneity does not yield larger stable coalitions. In particular, we show that, in the case of two types, when stable coalitions exist their size is very small, and, if the asymmetry is strong enough, they include only one type of countries. Moreover, heterogeneity can reduce the scope of cooperation relative to the homogeneous case. We demostrated that introducing asymmetry into a stable, under symmetry, agreement can disturb stability.
    Keywords: Environmental Agreements.
    JEL: D6 Q5 C7
    Date: 2018–06
  13. By: Bartke, Simon; Gelhaar, Felix
    Abstract: The extent to which individuals cooperate depends on the context. This study analyzes how interactions of workplace context elements affect cooperation when free-riding is possible. Context consists of a novel team building exercise, varying degrees of complementarity in production, and different remuneration schemes. After participation in the team building exercise and when complementarities are high, subjects exert higher efforts under team remuneration than under individual remuneration, despite the possibility to free-ride. Across all contexts, subjects cooperate significantly more than Nash equilibria predict. Compared to contexts in which not all contextual elements are cooperatively aligned, cooperation in a cooperative context relies significantly less on beliefs and personal values. Instead, a cooperative context changes how a subject's achievement motivation influences cooperation. Our findings present insights on how preferences react to context interactions and how these reactions enable organizations to use team incentives.
    Keywords: team building,workplace context,laboratory experiment,stability of preferences,motivation,cooperation
    JEL: D2 D91 L23 M14 M52
    Date: 2018
  14. By: Eswaran, Mukesh
    Abstract: This paper offers a theory of decentralized, non-state-sponsored terrorism that is characteristic of contemporary reality, and that explains the rise of homegrown terrorism. We argue that the sense of social identity is a prime motivator of non-strategic terrorist activities, and we investigate its consequences and implications for defence against terrorism. Terrorist responses to perceived affronts to identity increase with altruism towards in-groups and with endogenous intensity of hate towards out-groups. We show that, while out-group spite is the more essential feature of identity pertinent to decentralized terrorism, the intensity of terrorist actions is magniï¬ ed by in-group altruism because it plays an important role in overcoming the potential free-riding of terrorists. This makes individual terrorist activities possible without coordination. We use our formulation to provide an alternative explanation for why counterterrorism measures often fail, and frequently can have a backlash effect of increasing terrorism. Our results point to the need for western democracies to reformulate their foreign policies to take account of the role these policies play in instigating contemporary terrorism.
    Keywords: social identity; decentralized terrorism; altruism; spite; us versus them
    JEL: D74 H56
    Date: 2018–06–06
  15. By: Arkhipova, Alexandra (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Radchenko, Darya (Russian Presidential Academy of National Economy and Public Administration (RANEPA))
    Abstract: Accepting the thesis that the political struggle is, to a large extent, a game the stake in which is the opportunity to impose on others its picture of the world as legitimate and generally accepted (P. Bourdieu), we can consider public actions devoted to pressing political issues as "moves" in this game, in which competing versions of the present, the past and the future are offered. The most explicit position of the group is expressed in the course of its public appearances (meetings, marches, etc.). The set of slogans, symbols, actions observed at every public action allows us to reconstruct the main narratives of the corresponding political force (party, movement). In the article, based on a quantitative analysis of the base of slogans and symbols collected on public actions in 2011-2016, it is determined how various political forces synthesize in their narratives and symbols the conflicting historical experience of the country.
    Date: 2018–05
  16. By: Monika Banaszewska (Poznan University of Economics and Business); Ivo Bischoff (University of Kassel)
    Abstract: We want to find out whether grants-in-aid help the recipient government to get re-elected. We take Poland as our testing ground and analyze the impact of EU funds spent within a municipality on mayoral elections in 2010 and 2014. We employ an instrumental variables approach to account for the endogeneity of EU funds. Our results show that EU funds do not generally increase the mayors’ chance of reelection. This result holds for total EU funds spent as well as for funds spent on investments. We test whether the impact of EU funds is moderated by municipal characteristics. We find no effect for the economic or fiscal situation of municipalities, a positive but economically negligible effect for human capital endowment and a substantial effect for the share of pro-European citizens. Spending EU funds increases incumbent mayors’ chance of re-election in municipalities with a large share pro-EU citizens and reduces it in municipalities dominated by EU sceptics.
    Keywords: grants-in-aid, EU, Poland, local elections, instrumental variable regressions
    JEL: D72 H77
    Date: 2018

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