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The role of expectation of winning the election
The role of expectation, of possibility of winning the election and of policy convergence on choice of agenda. In standard model of optimal choice of policy, there is a single social planner, who chooses policies over the entire lifetime. But in reality a policy maker is elected for a finite term, say a few years, and he knows that ultimately same day he is fated to be replaced by someone else. This perception of being replaced by some other policy maker has a number of effects. Further, though every policy maker knows the fixed term he is elected for best in these days of increased political instability more important for the policy maker is the realization that he will be replaced, and even before completion of assigned term.
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Legislature-Executive Trade off Let us move a bit closer to the reality. In standard modes of policy optimization we assure that there is a single policy maker, who controls th
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