Institutional Analysis

Lecture 2: Rules of the GameSharyn O’Halloran

Basic Approach Preferences In -- Policies Out

• Issues emerge,• Interests (preferences) are formed, and• Information is transmitted to the• Institutions of government, where policy may or may not change.

Preferences(interests)

Policies

(legal constraints on economic or social activity)

electoral process

governmental process

Government

Where do institutions come from?

Institutions are the result of political process.

Choice is political Made by individuals with preferences over

policy. As circumstances change, so too may the

institutions of decision making. Institutions set the rules

They define the key actors, their interests, and the rules by which they interact in the governmental process.

Keep in mind as we review the basics of the US Constitution.

Madison’s Dilemma Government must be responsive to the will of

the people. Just fought for independence Aware of the consequences of unchecked authority

Government had to be effective The constitution was written in response to the

failures of the Article of Confederation. Articles extremely limited, the central government could

not even tax. Government had to be able to get things done.

Dilemma (inherent conflict) Must enable the government to control the govern

(i.e., tax) and then oblige the government to control itself.

Constitutional Solution Main Theme

Pit interest against interest Divide and arrange the offices so that each check

the other. How accomplished?

Divide government into different branches Render them by different modes of election Given them different abilities

Results The branches will never coalesce; no one branch

or individual can dominate the political process. Policy change difficult and incremental

Checks & Balances Types

Presidential veto Congressional override Judicial review

How does differing constituencies provide check?

Where do the interests of each branch come from? Representatives—districts, 2 years Senators—states, 6 years President—national, 4 years

The Federalist Papers Purpose

Propaganda to get white male landowners to sign on to the new government.

Concern was that the un-landed class would appropriate property.

What form of government do we have? Democracy? In what way are US institutions un-

democratic?

Federalist 10 Question?

How was a republican government, based on the election of a few to represent many, prevent tyranny.

Answer Tyranny can be controlled by competing

interests People have different interests Larger electorates (or number of representatives) have

more competing interests Therefore, to preserve individual rights and secure the

public good, need large number of competing interests. Case for strong union?

Union bigger and therefore has more competing interests than a state or locality.

Federalist 51 Question?

How to prevent one branch of government from dominating others?

Answer To ensure liberty, need to ensure separate and

distinct exercise of the different powers of government.

Premise: Men are self-interested Intermediate steps:

Men will abuse power Setting interest against interest Different modes of elections gives different interest

Conclusion: To ensure liberty need separation of powers based on

different modes of election to check each other’s abuse of power.