<Para ID="Par1">This paper analyzes incentives for cronyism in politics within a political agency model with moral hazard. The analysis focuses on the institutional features, which define contractual and appointment procedures within political organizations. The institutional framework does not allow explicit...</para>

This paper provides a theoretical model for the coattail effect, where a popular candidate for one branch of government attracts votes to candidates from the same political party for other branches of government. I assume a political agency framework with moral hazard in order to analyze the...