Two‐Tier Systems
Two‐Tier Systems
Studies the role of two‐tier systems in generating consensus for a reform that would be otherwise repelled. It is shown that if exposure to unemployment is initially too low, such strategy will fail as well. Furthermore, it can be used to generate political support for an across‐the‐board reform at a later stage. However, recognition of that possibility by voters ex‐ante will reduce the political support for the two‐tier reform.
Keywords: consensus, conversion clause, gradualism, lock‐in, political dynamics, two‐tier systems
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