Gate-Keeping and Public Goods
RODRÍGUEZ FERNÁNDEZ, Darío (conference group: 58234) Political economy and public choice – Homework n. 2
1) The speaker of the House has gate-keeping power. She makes proposals to the floor and, if not accepted, the status quo is implemented. Discuss the consequences of implementing a closed rule or an open rule.
In the following essay, I will try to explain the different consequences of implementing an open or a closed rule. First of all, we consider some assumptions: There is a status quo. We can either be in an open rule or close rule. Speaker can choose between proposing something and don’t propose anything (in this case, the outcome is the status quo).
Closed Rule A close rule means that there is a take-it-or-leave it proposal. The speaker of the House makes an offer that can be accepted by the floor. Let’s take a look at the different variables: AM = policy preferred by the median legislator A0 = status quo AG = policy preferred by the gate-keeper
A0
AM
A1
The possible outcomes are A0, A1 and AG. This outcome will depend on AG: 1) If the policy preferred by the speaker of the House (AG) is placed at the left of A0, he will not even propose it as the floor will reject it for sure. The reason is that A0, which is the status quo, is closer to the policy preferred by the median legislator (AM). 2) The second option is that AG is between A0 and A1, in that case, the proposal would be accepted by the floor no matter where this offer is located. Hence, the speaker would propose AG, which will be the final outcome. 3) The third and final option is that the speaker proposal is placed at the right of A1. In that case, as he knows the floor preferences, he will simply propose A1 as is as preferred as the status quo by the floor. Hence, the outcome will be A1. So as a conclusion, the unique possible outcomes are A0, AG and A1. The only case in which AM would be the outcome will be if AG=AM (speaker proposal is equal to median legislator
1) The speaker of the House has gate-keeping power. She makes proposals to the floor and, if not accepted, the status quo is implemented. Discuss the consequences of implementing a closed rule or an open rule.
In the following essay, I will try to explain the different consequences of implementing an open or a closed rule. First of all, we consider some assumptions: There is a status quo. We can either be in an open rule or close rule. Speaker can choose between proposing something and don’t propose anything (in this case, the outcome is the status quo).
Closed Rule A close rule means that there is a take-it-or-leave it proposal. The speaker of the House makes an offer that can be accepted by the floor. Let’s take a look at the different variables: AM = policy preferred by the median legislator A0 = status quo AG = policy preferred by the gate-keeper
A0
AM
A1
The possible outcomes are A0, A1 and AG. This outcome will depend on AG: 1) If the policy preferred by the speaker of the House (AG) is placed at the left of A0, he will not even propose it as the floor will reject it for sure. The reason is that A0, which is the status quo, is closer to the policy preferred by the median legislator (AM). 2) The second option is that AG is between A0 and A1, in that case, the proposal would be accepted by the floor no matter where this offer is located. Hence, the speaker would propose AG, which will be the final outcome. 3) The third and final option is that the speaker proposal is placed at the right of A1. In that case, as he knows the floor preferences, he will simply propose A1 as is as preferred as the status quo by the floor. Hence, the outcome will be A1. So as a conclusion, the unique possible outcomes are A0, AG and A1. The only case in which AM would be the outcome will be if AG=AM (speaker proposal is equal to median legislator