Scandal, protection, and recovery in political cabinets

Empirical evidence suggests that a Prime Minister can benefit from firing ministers who are involved in political scandals. We explore a model in which a minister's exposure to scandals is positvely related to his policy activism, so that a Prime Minister may wish to protect him from resignatio...

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Main Authors: Myatt, D, Dewan, T
Format: Working paper
Published: University of Oxford 2005
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author Myatt, D
Dewan, T
author_facet Myatt, D
Dewan, T
author_sort Myatt, D
collection OXFORD
description Empirical evidence suggests that a Prime Minister can benefit from firing ministers who are involved in political scandals. We explore a model in which a minister's exposure to scandals is positvely related to his policy activism, so that a Prime Minister may wish to protect him from resignation calls. We find that protection can sometimes work against the objective of encouraging activism: it makes a minister's position more valuable to him and hence can encourage 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 policy innovations. The Prime Minister's ability to protect ministers from resignation calls is limited by her short-term incentive to fire. She may, however, enhance her credibility by building a collective reputation with the wider membership of her cabinet; we show that heterogeneity of cabinet membership can play an important role.
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spelling oxford-uuid:a8741384-4153-4172-a526-96947bdfd2f32022-03-27T03:01:38ZScandal, protection, and recovery in political cabinetsWorking paperhttp://purl.org/coar/resource_type/c_8042uuid:a8741384-4153-4172-a526-96947bdfd2f3Bulk import via SwordSymplectic ElementsUniversity of Oxford2005Myatt, DDewan, TEmpirical evidence suggests that a Prime Minister can benefit from firing ministers who are involved in political scandals. We explore a model in which a minister's exposure to scandals is positvely related to his policy activism, so that a Prime Minister may wish to protect him from resignation calls. We find that protection can sometimes work against the objective of encouraging activism: it makes a minister's position more valuable to him and hence can encourage 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 policy innovations. The Prime Minister's ability to protect ministers from resignation calls is limited by her short-term incentive to fire. She may, however, enhance her credibility by building a collective reputation with the wider membership of her cabinet; we show that heterogeneity of cabinet membership can play an important role.
spellingShingle Myatt, D
Dewan, T
Scandal, protection, and recovery in political cabinets
title Scandal, protection, and recovery in political cabinets
title_full Scandal, protection, and recovery in political cabinets
title_fullStr Scandal, protection, and recovery in political cabinets
title_full_unstemmed Scandal, protection, and recovery in political cabinets
title_short Scandal, protection, and recovery in political cabinets
title_sort scandal protection and recovery in political cabinets
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