Unraveling short- and farsightedness in politics

Gersbach, Hans; Ponta, Oriana

doi:10.1007/s11127-016-0396-6

Please use this identifier to cite or link to this item: https://doi.org/10.21256/zhaw-11152

Publication type:	Article in scientific journal
Type of review:	Peer review (publication)
Title:	Unraveling short- and farsightedness in politics
Authors:	Gersbach, Hans Ponta, Oriana
DOI:	10.1007/s11127-016-0396-6 10.21256/zhaw-11152
Published in:	Public Choice
Volume(Issue):	2017
Issue:	3-4
Page(s):	289
Pages to:	321
Issue Date:	2017
Publisher / Ed. Institution:	Springer
ISSN:	0048-5829 1573-7101
Language:	English
Subject (DDC):	320: Politics
Abstract:	The absence of a deselection threat in incumbents’ last term in office can be negative or positive for the polity. Some politicians may reduce their efforts, while others may pursue beneficial long-term policies that may be unpopular in the short term. We propose a novel pension system that solves the effort problem while preserving the willingness to implement long-term policies. The idea is to give politicians the option to choose between a flexible and a fixed pension scheme. While in the fixed scheme, performance has no impact on the pension, the pension increases with short-term performance in the flexible scheme, using the vote share of the officeholder’s party in the next election as a performance indicator. Such a pension choice improves the well-being of citizens since officeholders are encouraged to invest in those activities that are beneficial for society. We analyze the properties and consequences of such a system. Finally, we extend the pension system with choice to non-last-term situations and derive a general welfare result.
Further description:	Erworben im Rahmen der Schweizer Nationallizenzen (http://www.nationallizenzen.ch)
URI:	https://digitalcollection.zhaw.ch/handle/11475/11152
Fulltext version:	Published version
License (according to publishing contract):	Licence according to publishing contract
Departement:	School of Management and Law
Organisational Unit:	Institute of Public Management (IVM)
Appears in collections:	Publikationen School of Management and Law

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Gersbach, H., & Ponta, O. (2017). Unraveling short- and farsightedness in politics. Public Choice, 2017(3-4), 289–321. https://doi.org/10.1007/s11127-016-0396-6

Gersbach, H. and Ponta, O. (2017) ‘Unraveling short- and farsightedness in politics’, Public Choice, 2017(3-4), pp. 289–321. Available at: https://doi.org/10.1007/s11127-016-0396-6.

H. Gersbach and O. Ponta, “Unraveling short- and farsightedness in politics,” Public Choice, vol. 2017, no. 3-4, pp. 289–321, 2017, doi: 10.1007/s11127-016-0396-6.

GERSBACH, Hans und Oriana PONTA, 2017. Unraveling short- and farsightedness in politics. Public Choice. 2017. Bd. 2017, Nr. 3-4, S. 289–321. DOI 10.1007/s11127-016-0396-6

Gersbach, Hans, and Oriana Ponta. 2017. “Unraveling Short- and Farsightedness in Politics.” Public Choice 2017 (3-4): 289–321. https://doi.org/10.1007/s11127-016-0396-6.

Gersbach, Hans, and Oriana Ponta. “Unraveling Short- and Farsightedness in Politics.” Public Choice, vol. 2017, no. 3-4, 2017, pp. 289–321, https://doi.org/10.1007/s11127-016-0396-6.