the oxford handbook of .......................................................................................................................... POLITICAL ECONOMY .......................................................................................................................... Editedby BARRY R. WEINGAST and DONALD A. WITTMAN 1 the oxford handbook of POLITICAL ECONOMY t h e o x f o r d h a n d b o o k s o f p o l i t i c a l s c i e n c e General Editor: Robert E. Goodin The Oxford Handbooks of Political Science is a ten-volume set of reference books offering authoritative and engaging critical overviews of all the main branches of politicalscience. TheseriesasawholeisundertheGeneralEditorshipofRobertE.Goodin,with eachvolumebeingeditedbyadistinguishedinternationalgroupofspecialistsintheir respectivefields: POLITICAL THEORY JohnS.Dryzek,BonnieHonig&AnnePhillips POLITICAL INSTITUTIONS R.A.W.Rhodes,SarahA.Binder&BertA.Rockman POLITICAL BEHAVIOR RussellJ.Dalton&Hans-DieterKlingemann COMPARATIVE POLITICS CarlesBoix&SusanC.Stokes LAW & POLITICS KeithE.Whittington,R.DanielKelemen&GregoryA.Caldeira PUBLIC POLICY MichaelMoran,MartinRein&RobertE.Goodin POLITICAL ECONOMY BarryR.Weingast&DonaldA.Wittman INTERNATIONAL RELATIONS ChristianReus-Smit&DuncanSnidal CONTEXTUAL POLITICAL ANALYSIS RobertE.Goodin&CharlesTilly POLITICAL METHODOLOGY JanetM.Box-Steffensmeier,HenryE.Brady&DavidCollier Thisseriesaspirestoshapethediscipline,notjusttoreportonit.LiketheGoodin– Klingemann New Handbook of Political Science upon which the series builds, each of these volumes will combine critical commentaries on where the field has been togetherwithpositivesuggestionsastowhereitoughttobeheading. 3 GreatClarendonStreet,Oxfordox26dp OxfordUniversityPressisadepartmentoftheUniversityofOxford. ItfurtherstheUniversity’sobjectiveofexcellenceinresearch,scholarship, andeducationbypublishingworldwidein OxfordNewYork AucklandCapeTownDaresSalaamHongKongKarachi KualaLumpurMadridMelbourneMexicoCityNairobi NewDelhiShanghaiTaipeiToronto Withofficesin ArgentinaAustriaBrazilChileCzechRepublicFranceGreece GuatemalaHungaryItalyJapanPolandPortugalSingapore SouthKoreaSwitzerlandThailandTurkeyUkraineVietnam OxfordisaregisteredtrademarkofOxfordUniversityPress intheUKandincertainothercountries PublishedintheUnitedStates byOxfordUniversityPressInc.,NewYork ©theseveralcontributors2006 Themoralrightsoftheauthorshavebeenasserted DatabaserightOxfordUniversityPress(maker) Firstpublished2006 Allrightsreserved.Nopartofthispublicationmaybereproduced, storedinaretrievalsystem,ortransmitted,inanyformorbyanymeans, withoutthepriorpermissioninwritingofOxfordUniversityPress, orasexpresslypermittedbylaw,orundertermsagreedwiththeappropriate reprographicsrightsorganization.Enquiriesconcerningreproduction outsidethescopeoftheaboveshouldbesenttotheRightsDepartment, OxfordUniversityPress,attheaddressabove Youmustnotcirculatethisbookinanyotherbindingorcover andyoumustimposethesameconditiononanyacquirer BritishLibraryCataloguinginPublicationData Dataavailable LibraryofCongressCataloginginPublicationData Dataavailable TypesetbySPIPublisherServices,Pondicherry,India PrintedinGreatBritain onacid-freepaperby BiddlesLtd.,King’sLynn,Norfolk ISBN0–19–927222-0 978–0–19-927222-8 13579108642 Dedicatedtomyparents,BarbaraandEdwardWeingast B.W. DedicatedtoNoah,Emily,andJoshua D.W. ontents C ..................................... AbouttheContributors xiii PART I INTRODUCTION 1. TheReachofPoliticalEconomy 3 BarryR.Weingast&DonaldA.Wittman PART II VOTERS, CANDIDATES, AND PRESSURE GROUPS 2. Voters,Candidates,andParties 29 StephenAnsolabehere 3. RationalVotersandPoliticalAdvertising 50 AndreaPrat 4. CandidateObjectivesandElectoralEquilibrium 64 JohnDuggan 5. PoliticalIncomeRedistribution 84 JohnLondregan 6. TheImpactofElectoralLawsonPoliticalParties 102 BernardGrofman PART III LEGISLATIVE BODIES 7. LegislaturesandParliamentsinComparativeContext 121 MichaelLaver 8. TheOrganizationofDemocraticLegislatures 141 GaryW.Cox viii contents 9. CoalitionGovernment 162 DanielDiermeier 10. DoesBicameralismMatter? 180 MichaelCutrone&NolanMcCarty PART IV INTERACTION OF THE LEGISLATURE, PRESIDENT, BUREAUCRACY, AND THE COURTS 11. TheNewSeparation-of-PowersApproachtoAmericanPolitics 199 RuiJ.P.deFigueiredo,Jr.,TonjaJacobi &BarryR.Weingast 12. Pivots 223 KeithKrehbiel 13. ThePoliticalEconomyoftheUSPresidency 241 CharlesM.Cameron 14. Politics,Delegation,andBureaucracy 256 JohnD.Huber&CharlesR.Shipan 15. TheJudiciaryandtheRoleofLaw 273 MathewD.McCubbins&DanielB.Rodriguez PART V CONSTITUTIONAL THEORY 16. Constitutionalism 289 RussellHardin 17. Self-EnforcingDemocracy 312 AdamPrzeworski 18. ConstitutionsasExpressiveDocuments 329 GeoffreyBrennan&AlanHamlin 19. TheProtectionofLiberty,Property,andEquality 342 RichardA.Epstein 20.Federalism 357 JonathanA.Rodden contents ix PART VI SOCIAL CHOICE 21. SocialChoice 373 HervéMoulin 22. AToolKitforVotingTheory 390 DonaldG.Saari 23. InterpersonalComparisonsofWell-Being 408 CharlesBlackorby&WalterBossert 24.FairDivision 425 StevenJ.Brams PART VII PUBLIC FINANCE AND PUBLIC ECONOMICS 25. StructureandCoherenceinthePoliticalEconomyofPublicFinance 441 StanleyL.Winer&WalterHettich 26.PoliticalEconomyofFiscalInstitutions 464 JürgenvonHagen 27. VotingandEfficientPublicGoodMechanisms 479 JohnLedyard 28.FiscalCompetition 502 DavidE.Wildasin PART VIII POLITICS AND MACROECONOMICS 29.TheNon-PoliticsofMonetaryPolicy 523 SusanneLohmann 30.Political-EconomicCycles 545 RobertJ.Franzese,Jr.,&KarenLongJusko 31. VotingandtheMacroeconomy 565 DouglasA.Hibbs,Jr. 32. ThePoliticalEconomyofExchangeRates 587 J.LawrenceBroz&JeffryA.Frieden