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Reputation-Based Governance$
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Lucio Picci

Print publication date: 2011

Print ISBN-13: 9780804773294

Published to Stanford Scholarship Online: June 2013

DOI: 10.11126/stanford/9780804773294.001.0001

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Interdependence Between the Choice and Execution of Policies

Interdependence Between the Choice and Execution of Policies

(p.144) 9 Interdependence Between the Choice and Execution of Policies
Reputation-Based Governance
Stanford University Press

This chapter discusses how the characteristics of governance may influence policy choice. Ex-post checks on policy makers' actions implied by reputation-based governance, which makes administrators and politicians accountable to an unprecedented degree, cause strong ex-ante incentives to carry out policies efficiently. However, the modification of ex-ante incentives may also lead to a different choice of policies, because politicians, who are typically concerned about their own reelection, are likely to choose policies that are better attuned to the people's wishes. Determining how the characteristics of governance influence the type of policies that are chosen is not straightforward. The chapter focuses on a single important policy characteristic—boldness. Using a simple model, it determines under what conditions the stronger incentives associated with reputation-based governance would lead to the choice of more or less ambitious policies.

Keywords:   reputation-based governance, policy selection, boldness, ex-ante incentives, policy choice

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