Scandal, Protection, and Recovery in the Cabinet.

Empirical evidence suggests that a prime minister benefits from firing ministers who are involved in political scandals. We explore a model in which scandals are positively related to policy activism, so that a prime minister may wish to protect a minister from resignation calls. We find that protec...

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Main Authors: Dewan, T, Myatt, D
Format: Journal article
Language:English
Published: 2007
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author Dewan, T
Myatt, D
author_facet Dewan, T
Myatt, D
author_sort Dewan, T
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description Empirical evidence suggests that a prime minister benefits from firing ministers who are involved in political scandals. We explore a model in which scandals are positively related to policy activism, so that a prime minister may wish to protect a minister from resignation calls. We find that protection can sometimes discourage activism: it enhances the value of a minister's career and hence encourages him to "sit tight" by moderating his activities. On the other hand, an exogenous increase in exposure to scandals may lead a minister to "live for today" by pursuing controversial policies. The prime minister's ability to protect ministers is limited by her short-term incentive to fire. She may, however, enhance her credibility by building a collective reputation with the cabinet; the heterogeneity of cabinet membership plays an important role.
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spelling oxford-uuid:81dbc7cf-ef70-438c-89a7-573855e28dfe2022-03-26T21:33:06ZScandal, Protection, and Recovery in the Cabinet.Journal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:81dbc7cf-ef70-438c-89a7-573855e28dfeEnglishDepartment of Economics - ePrints2007Dewan, TMyatt, DEmpirical evidence suggests that a prime minister benefits from firing ministers who are involved in political scandals. We explore a model in which scandals are positively related to policy activism, so that a prime minister may wish to protect a minister from resignation calls. We find that protection can sometimes discourage activism: it enhances the value of a minister's career and hence encourages him to "sit tight" by moderating his activities. On the other hand, an exogenous increase in exposure to scandals may lead a minister to "live for today" by pursuing controversial policies. The prime minister's ability to protect ministers is limited by her short-term incentive to fire. She may, however, enhance her credibility by building a collective reputation with the cabinet; the heterogeneity of cabinet membership plays an important role.
spellingShingle Dewan, T
Myatt, D
Scandal, Protection, and Recovery in the Cabinet.
title Scandal, Protection, and Recovery in the Cabinet.
title_full Scandal, Protection, and Recovery in the Cabinet.
title_fullStr Scandal, Protection, and Recovery in the Cabinet.
title_full_unstemmed Scandal, Protection, and Recovery in the Cabinet.
title_short Scandal, Protection, and Recovery in the Cabinet.
title_sort scandal protection and recovery in the cabinet
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