Resource title

Habit formation, strategic extremism and debt policy

Resource image

image for OpenScout resource :: Habit formation, strategic extremism and debt policy

Resource description

We suggest a probabilistic voting model where voters preferences for alternative public goods display habit formation. Current policies determine habit levels and in turn the future preferences of the voters. This allows the incumbent to act strategically in order to influence the probability of re-election. Comparing to a benchmark case of a certain re-election, we demonstrate that the incumbent s optimal policy features both a more polarized allocation between the alternative public goods and a debt bias.

Resource author

Egil Matsen, Øystein Thøgersen

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/26213

Resource license

Adapt according to the presented license agreement and reference the original author.