The Corrective Effect of Ministerial Resignations on Government Popularity

Abstract

Using data from the United Kingdom, we estimate the effects of ministerial resignation on government popularity. We test a counterfactual argument that resignations should have a corrective effect, that is, there is an increase in popularity following a resignation when taking into account the negative effect on popularity of the resignation issue. We get empirical estimates by using the age of ministers involved in resignation issues as an instrument. Our IV estimates provide empirical support for the corrective effect .