The Item Veto’s Sting

Abstract

Despite lofty expectations from the item veto’s proponents (and fears from its opponents), formal models have suggested that the item veto is unlikely to have much effect beyond what a full veto could render. However, I show that different findings obtain when item vetoes are appreciated more fully as a dimensionality-reducing institution. I begin by developing a package veto model in a generalized multidimensional space. I then show how introducing the item veto changes the outcome by forcing veto bargaining into what is essentially a unidimensional space. As a result, executives with an item veto or other dimensionality-reducing institution (such as a single-subject rule) can be far more powerful in legislative bargaining than executives who lack these tools, other things being equal. I use simulations to demonstrate the model’s main implications.