Achillefs Papageorgiou Postdoctoral researcher, Department of Political and Economic Studies, University of Helsinki, Unioninkatu 37, (P.O. Box 54) 00014 Helsinki. E-mail Address: Achillefs.Papageorgiou@helsinki.fi; tel: 00358- 9191 24823. Acknowledgments A version of this paper was presented in the conference: “New Developments in Modeling Party Competition”, July 14-15 2012, Social Science Research Center Berlin (WZB). The author is grateful to: James Adams, Susumu Shikano, Paul Thurner, Samuel Merrill III, Bernard Grofman, Rob Van Houweling, Woojin Moon, Heiko Giebler, Aiko Wagner, Bernhard Weßels, Thomas Meyer, Wolfgang Müller, Nicolas Sauger, Timothy Hellwig and Luigi Curini for their insightful comments. I also thank the participants of the XXXIV Annual Meeting of the Finnish Economic Association, Vaasa, February 9–10, 2012 and the participants of PCRC (Public Choice Research Centre) research seminar for their insightful comments. This study is part of the author’s postdoctoral research and is supported financially by the Finnish Cultural Foundation. 1 Title Why political parties in Finland have kept stable left and right positions during 2003- 2011? : A Nash equilibrium approach. Abstract This manuscript draws on a previous publication where it was argued that the discrepancy between Finnish left and right positions and their Nash equilibrium positions owes to the effect of projection. Here, equilibrium positions are compared with parties’ left and right positions after correcting for projection. The results reveal that the discrepancy between their left and right positions and their equilibrium positions does not diminish when projection is taken into account. However, when equilibrium positions are computed assuming that party choice depends not only upon proximity but also upon directional characteristics, Finnish parties’ left-right positions resemble their Nash equilibrium positions. JEL-codes: C15; C18; C31 Introduction In a previous publication (Papageorgiou 2010), it was hypothesized that Finnish parties have reached a state of equilibrium whereby no party has an incentive to change its left or right position unilaterally. The observation that drove the afore-mentioned hypothesis was the fact that Finnish parties were perceived by voters to have maintained very similar left and right positions1 during the course of 2003-2007. The biggest absolute difference on left and right positions was spotted for the SDP and was equal to just 0.57 increments; the average difference between the parties’ positions was just 0.35 (s.d.: 0.21). The latest data from the Finnish National Election Study series shows that parties have also retained very similar left and right positions in 2011 (Table 1). 2 The biggest By this it is not meant that the differences between voters’ perceptions of parties’ positions are not significant, but that the positions of the Finnish parties between the years have changed very little in absolute values. The author thanks an anonymous reviewer for pointing this out. 2 To enhance confidence in the reported mean scores of parties’ positions, the standard errors are also reported for every party (Table 1, standard errors inside the parentheses). Standard errors are computed using a re-sampling method, such as the bootstrap (the jackknife method produces almost identical results). The number of bootstrap replications 1 2 difference between 2007 and 2011 left and right positions was spotted for the PS and was equal to just 0.27 increments. On average, the difference between the 2007 and 2011 perceived positions was just 0.15 increments (s.d.: 0.08). [Table 1] However, results from the equilibrium analysis showed (Papageorgiou 2010) that Finnish parties’ left and right positions in 2007 diverged much more than their Nash equilibrium positions. Finnish parties’ Nash equilibrium positions converge towards the centre of the left and right dimensions (mean: 5.66, s.d.: 0.34) whereas parties’ left and right positions are much more spread out, with a standard deviation more than five times as great as that of the equilibrium positions (mean: 5.45, s.d.: 1.86). What explains this significant difference between parties’ equilibrium positions and their perceived left and right positions? First, the discrepancy between the Nash equilibrium positions and parties’ left and right positions might be due to the presence of projection. With projection, voters misjudge party positions by considering their preferred parties to be closer to their own ideological positions while overestimating their distance from rival parties (e.g., Gerber and Green 1999; Granberg and Holmberg 1988; Jensen 2009; etc.). Second, the equilibrium analysis was based on an algorithm that assumed that the only known factors that affect voting are party identification and policy issue proximity. The huge party identification coefficient B 4.036 in comparison to the small policy issue coefficient a 0.0809 (Papageorgiou 2010) indicated that party identifiers are so ‘biased’ towards their parties that the latter can only compete over independents. Since independents are found on the centre of the left and right dimensions, parties also have vote maximizing incentives to present centrist positions. This, coupled with the fact that proximity theory also tends to produce convergence, explains why performed was 1,000. The small standard errors reported in Table 1 for each of the three data sets increase confidence that the samples used give unbiased estimates of the population mean (King et al. 2000). 3 Finnish parties’ equilibrium positions converged in contrast to their left and right positions, which are much more divergent. The present manuscript takes on board the effect that the above mentioned points have on Finnish parties’ equilibrium positions by performing two new types of equilibrium analysis. The first type corrects party positions for the effect of projection. Although the previous article acknowledged that projection might be responsible for the discrepancy between parties’ equilibrium positions and their left and right positions, this point was not directly incorporated into the analysis. The assumption is that the magnitude of the discrepancy between their Nash equilibrium positions and their left and right positions will diminish if parties’ positions are corrected for the effect of projection. The second type considers the effect that another type of spatial theory - namely a directional one will have on the computation of the parties' equilibrium positions. Generally, and contrary to proximity theory, directional theory produces divergence. The directional component is introduced in a mixed model with interaction, which is discussed in detail later on. Although it is acknowledged that a possible high value party identification coefficient will impart a significant effect on parties’ centripetal positioning, we retain the specification of capturing non-policy issue characteristics through party identification.3 The main reason for this is to make the results of the current analysis comparable with the results of the previous manuscript, where party identification was also used. In the same vein, and in order to make the results comparable with the previous study, data was also drawn from the Finnish National Election Study 2007.4 3 Instead of, e.g., the recalled voting that was used in Adams, Merrill and Grofman's publications (e.g., Adams et al. 2005; Adams and Merrill 2000) 4 Finnish National Election Study 2007 [computer file]. FSD2269, version 1.0 (2007-08-02). Paloheimo, Heikki (University of Tampere. Department of Political Science and International Relations) and the members of the Political Participation and Modes of Democracy: Finland in a Comparative Perspective research group [Authors, 2010s]. Helsinki : Taloustutkimus [data collection], 2007. Tampere: Finnish Social Science Data Archive [distributor], 2007. 4 Equilibrium analysis The algorithm locating the Nash equilibrium has been incorporated in a series of publications produced by Adams, Grofman and Merrill (e.g., Merrill and Adams 2001; Adams et al. 2005; Adams and Merrill 2000; etc.). The algorithm assumes that voters’ party choices depend upon a quadratic function that measures ideological proximity and a stable function that measures party identification: Vi ( ) a( xi x ) 2 Bt i i (1) (Adams et al., 2005; Adams and Merrill, 2000; etc.) a stands for the policy issue parameter and B for the party identification parameter; xi stands for the position of a voter i , x for the mean perceived position of a party , t i for party identification and i for the errors which, by definition, are independent when a conditional logit (CL) model is assumed. 5 The independence of the errors gives rise to the independence of the irrelevant alternatives assumption (IIA). The IIA holds that the probability ratio between two alternatives is not affected by the existence of other, similar alternatives6 (Thurner and Eymann 2000). In electoral studies, this might seem to be a restrictive assumption, since the birth of a party can provide a similar ideological alternative to two or more already existing parties (Glasgow 2001). To go around the restriction that the IIA entails, other statistical models have been proposed that partially relax (such as the nested logit) or fully relax (such as the mixed logit) the IIA. The nested model partially relaxes the IIA in the sense that it assumes that the random factors belonging to the same nest are correlated, yet those that belong to different nests are independent of one another. On the other hand, the mixed logit fully relaxes the IIA assumption. In practice, this means that the coefficients of the explanatory variables are stochastic and not the same for each case (Christiadi and Cushing 2007). Nonetheless, although the aforementioned models offer a solution to the restriction imposed by the IIA, they entail a computational burden when more than three 5 Under the conditional logit model, the error term exhibits the extreme value distribution with a probability density function: 6 f ( i ) e i e e i . Therefore, the probability ratio of an individual i over two party alternatives and can be written as: a ( x i s ) 2 Bt i P i e 2 P i e a ( xi s ) Bti 5 candidates or parties are involved. Thus, most studies on party competition (e.g., Adams et al. 2006; Alvarez and Nagler 1998; Dow and Endersby 2004), as well the work at hand, incorporate a multinomial type of statistical model, such as the CL. Correcting party positions for the effect of projection As was shown in Papageorgiou (2010) the relationship between voters’ self-placement and their average perceived distance in relation to parties in Finland is U-shaped. This is because moderate voters see, on average, the least distance between their own left and right positions and those of the parties, most of which are placed on non-extreme positions. On the other hand, extreme voters meaning voters who present a position at either end of the left or right dimension - are distant from most parties. Since the algorithm locating the Nash equilibrium positions is based on the voters’ perceptions regarding the parties’ left and right positions, the latter are corrected for the effect of projection. If x is a party’s position after correcting for projection, then: x x 1 (2) where x is the position of voter before correcting for projection and 1 is the coefficient obtained (Table 2) after fitting the model: x 0 1Di . where Di ( xi x ) and x is the mean value of position x . With this technique (Merrill and Grofman 1999), the ‘best estimate of the respondent’s projection’ (1999: 180) is deleted from the respondent’s party placement. 6 Replacing (2) in (1): Vi ( ) ax i ( x 1) 2 Bt i i or: Vi ( ) a( xi x ) 2 Bt i i (3) Assuming a CL model, the values of the coefficients a and B in (3) are estimated. As can be seen in Table 3, the coefficients are essentially the same as the coefficients reported in Papageorgiou (2010), where a 0.0809 and B 4.036 . The coefficient of party identification is huge, indicating that a respondent who identifies with party and who is equidistant between two rival parties and will almost always prefer to . This result is in line with previous studies (e.g., Stokes, 1963; Sanders et al., 2008), which have shown that non-policy characteristics are usually more salient when compared to spatial characteristics. Columns 2 and 3 of Table 3 present Finnish parties’ mean left and right positions before and after correcting for projection, respectively (standard deviations and bootstrapped standard errors are also reported). Column 4 gives the parties’ Nash equilibrium positions after correcting for projection. The equilibrium positions are calculated after replacing the values of the coefficients for (3) and then running the algorithm.7 Entries in italics represent standard errors8 that emanate from a Monte Carlo simulation, where the empirical estimated coefficients are “re-sampled independently from their asymptotic Gaussian distribution and [the] Nash equilibrium is re-evaluated each time” (Curini and Iacus 2012: 18). The number of Monte Carlo simulations was 1,000. [Table 2] [Table 3] 7 The algorithm computes the party’s expected vote share, which is given by derivative of P (s, a) as equal to zero with respect to s i P (s, a) . Setting the first partial i and solving for s , we get party 's vote maximizing position (for the proof of why parties’ vote maximizing positions are unique, see Merrill and Adams, 2001: 351; for the R scripts or the excel worksheets that run the algorithm, see: http://course.wilkes.edu/merrill/ ). 8 Standard errors for the Nash equilibrium positions have been calculated using the nopp package in R (Curini and Iacus, 2012) 7 Upon correcting for projection, the Nash equilibrium positions have a mean of 5.66 and a standard deviation of 0.33, indicating a small diffusion compared to the parties’ left and right positions, which are spread out with a mean of 5.48 and a standard deviation of 2.0. Thus, the discrepancy between their equilibrium positions and their left and right positions does not diminish after correcting parties’ left and right positions for the effect of projection.9 This is not surprising, since the coefficients presented in Table 2 are close to zero. This minimal effect of projection on parties’ mean perceived positions and their Nash equilibrium positions is also in line with Merrill and Grofman’s (1999) findings when performing the same analysis in Norway. The former result drives the analysis in the second part of this article. Since projection is not to be ‘blamed’ for the discrepancy between the parties' equilibrium positions and their left and right positions, either the Finnish parties have retained stable positions for reasons other than vote maximizing or else they have indeed reached a state of equilibrium. However, the (equilibrium) analysis needs to take into account alternative specifications of spatial modelling, as detailed bellow. A mixed model specification with interaction In the analysis just given, it was assumed that directional components have no effect on the computation of Nash equilibrium positions. In this section, this assumption is relaxed by adding a directional component to the voting equation. Alongside this directional component, the analysis also adds an interaction term. The interaction is between a variable that varies between both observations and alternatives, such as the mixed proximity directional component and a dummy variable that is constant across choices such as party identification. Thus, in adding the interaction term, the analysis allows the mixed directional proximity component to have a different effect on the party identification variable for each of the two groups: the party identifiers of one party and the party identifiers of another party; or else between party identifiers and independents. In other words, the analysis allows that the Finnish parties’ Nash equilibrium positions, without correcting for projection, are: KESK: 5.89; SDP: 5.21; KOK:6.21; VAS: 5.27; VIHR: 5.49; RKP: 5.93; KD: 5.64; PS: 5.61; with mean: 5.66 and s.d.: 0.34 (Papageorgiou 2010). 9 8 spatial characteristics will have a different effect on party choice for different groups of voters. Under the mixed model specification with interaction, equation (1) is now re-written as:10 Vi ( ) a 2(1 )( x i 5)( x 5) ( x i x ) 2 Bt i CI i (4) where, I 2(1 )( x i 5)( x 5) ( x i x ) 2 *t i . Coefficient C stands for the interaction between the party identification component and the mixed directional proximity component. stands for the mixing parameter. In case the interaction term C equals zero, has the following properties: if 1 then (4) reduces to (1); if 0 (4) reduces to a voting model according to which party choice depends upon the directional theory, party identification and a random term. According to the directional theory of voting (Rabinowitz and Macdonald, 1989; Macdonald et al., 1991), a positive product score of ( xi 5)( x 5) indicates that the voter and the party stand on the same side of the fence. A negative sign indicates that the voter and the party belong to different sides. The numeral 5 stands for the neutral point on the 0-10 scale of the left-right dimension. The voter votes for the party which yields the biggest product score11 (Listhaug et al. 1990). If the voters feel intensely about an issue, they will vote for the party which also places a lot of emphasis on that issue (Merrill and Grofman 1999). If <0.5, the voter relies more upon directional components for his party choice. If >0.5, the voter relies more upon proximity components. Lastly, if 0.5 , the voter places an equal emphasis upon both proximity and directional characteristics. A party’s position x can either be captured through mean or idiosyncratic (voter-specific) party placement. Proponents (e.g., Rabinowitz and Macdonald 1989; Macdonald et al. 1991; etc.) of mean party placement argue that idiosyncratic placement does not produce valid results, as the voter always projects his own position onto the party. The advantage of mean party placement is that it lessens voters’ subjective judgements (Rabinowitz and Macdonald 1989). Furthermore, as Enelow We adopt the convention of referring to equation (4) as the “mixed model with interaction.” This note only presents a reduced version of the directional theory. A complete version entails the concept of the “region of acceptability.” The “region of acceptability” is defined as the area outside which the party suffers a penalty (Listhaug et al. 1994). If a party presents a position outside the range of the “region of acceptability,” then the actual votes that the party receives are reduced according to a discounting factor. 10 11 9 and Hinich (1984) point out, the spatial theory of voting is consistent with the argument that ‘candidates have fixed, stable locations on a set of underlying predictive dimensions’ (1984: 168), and therefore the mean party position should be preferred over idiosyncratic party placement. On the other hand, proponents of idiosyncratic placement (e.g., Krämer and Rattinger 1997; Gilljam 1997; Westholm 1997; Merrill and Grofman 1999) assert that idiosyncratic party placement should be preferred for the reason that ‘a voter’s evaluations are more closely attuned to the voter’s own assessment of a candidate’s position than to the national mean placement, which is not known to the voter’ (Merrill and Grofman 1999: 176). We agree with the latter argument and have decided to capture a party’s position by employing the idiosyncratic specification. An additional reason for the use of idiosyncratic placement is that the main objection against its use - namely, the effect of projection - does not have any real effect on parties’ positions, as was shown in the first part of the manuscript. The parameter estimates of algorithm (4) as emanating from a maximum likelihood analysis are shown in Table 4. As can be seen, the mixing parameter equals 0.58, thus favouring - slightly the proximity component over the directional component. The sign in front of the interaction parameter C is negative. This means that when neither the party identification coefficient nor the mixed component coefficients are zero, the interaction of both of them has a diminishing effect on voters’ party choice. However, because C equals 0.1 in absolute values, the afore-mentioned diminishing effect is actually trivial. [Table 4] Table 5 shows the parties’ Nash equilibrium positions12 upon replacing the values of the parameters in algorithm (4). [Table 5] 12 The Nash equilibrium positions have been computed using an adaptation of the R script posted on Sam Merrill’s website. 10 An initial observation is that the Nash equilibrium positions are much more widespread than those reported in Papageorgiou (2010) and those presented in Section 2 of the present manuscript. As such, although empirical research has shown that is not really possible to distinguish between the directional component and the proximity component (Lewis and King 1999), the mixed model with interaction nonetheless produces very different equilibrium positions when compared to those produced when voting depends only upon proximity and party identification. The result whereby the equilibrium positions spread out under the mixed model with interaction13 is consistent with the argument that the directional component produces divergence (Rabinowitz and Macdonald 1989; Iversen 1994). A second observation is that parties in equilibrium retain their order on the left and right dimension; starting from the left, the order of the parties is VAS, SDP, VIHR, PS, KD, KESK, RKP and KOK. One observation is in order at this point regarding the left and right and the equilibrium position of the ‘True Finns’, PS. PS cannot easily be classified in terms of left or right - it is a populist party which has a mixed policy and issues a programme that entails both left and right wing policies.14 For instance, the party advocates policies that are traditionally supported by left wing parties (e.g., the maintenance of the welfare state) while at the same time it displays features that one sees in extreme right wing parties (e.g., the party has often expressed a xenophobic and an anti-immigrant rhetoric). The fact that PS cannot be easily classified in terms of left and right is evidenced in the disparity of voters’ perceptions regarding the party’s position. When respondents were asked to place PS on the left-right dimension, around 48% placed it on a left wing position (that is from 0-5) and around 52% placed it on a right wing position (that is from 6-10) (Data: FNES 2007). In general, voters’ perceptions regarding the left and right position of PS were the most dispersed, with a standard deviation as high as 2.3.15 The last column of Table 5 shows the absolute difference between the parties’ left and right positions and their Nash equilibrium positions. The largest difference is spotted for VAS, which has an incentive to relocate from 1.86 to 3.37; in other words, VAS has an incentive to move 1.51 increments from its perceived left and right position towards meeting its equilibrium position. For 13 Actually, the same holds for a mixed model without the interaction term: the equilibrium positions spread out and are very similar to those reported here. 14 In this respect, PS is somewhat different from the Norwegian Progress Party who is also a populist party but with a rather clear right wing agenda. 15 On average, the standard deviations for all the other seven parties equalled 1.78. 11 all of the other seven parties, the absolute difference between their left and right positions and their Nash equilibrium positions is below 0.8 increments, and thus very small. On average, the difference between the parties’ left and right positions and their Nash equilibrium positions was equal to just 0.69, with a standard deviation as low as 0.36. This small discrepancy between the parties’ left and right positions and their Nash equilibrium positions is also visualized in Figure 1. As can be seen here, the parties’ positions on the left-right dimension are similar to their equilibrium positions. The small but systematic drift to the right in party equilibrium positions when compared to the parties’ left and right positions might be explained by the fact that the percentage distribution of voters’ self-placement is also skewed to the right.16 The former finding supports the argument that what might be behind Finnish parties’ left and right stability is the presence of equilibrium, whereby no party has an incentive to deviate unilaterally from its vote-maximizing position. Nonetheless, the analysis acknowledges that there might be reasons other than vote-maximizing behaviour behind parties’ stable left and right positions over the course of 2003-2011. For instance, in a country such as Finland where there has never been a single party government, ‘frozen’ left and right positions might be explained by parties’ strategies to maintain their coalitional potential. Another reason behind parties’ perceived stable positions might be parties’ emphasis on policyseeking incentives rather than vote maximization. However, the fact that Finnish parties are located close to their equilibrium positions is a good basis for an explanation of their ‘unwillingness’ to alter their left and right positions. [Figure 1] 16 24.38% of the respondents are placed on positions from 0-4, 23.85 are placed on position 5 and 51.76% are placed from 6-10. 12 Conclusions In a previous manuscript (Papageorgiou 2010), Finnish parties’ left and right positions were compared with their Nash equilibrium positions. Their equilibrium positions were computed by incorporating an algorithm that assumed that voter choice depends upon two known characteristics: policy-issue proximity and party identification. The results showed that although the parties’ perceived left and right positions were spread out, their Nash equilibrium positions revolved around the centre of the left-right dimension. This manuscript revisited the conclusion that Finnish parties are further away from a state of Nash equilibrium by performing two alternative types of equilibrium analysis. In the first type of equilibrium analysis, Finnish parties’ vote-maximizing positions were compared with their perceived left and right positions, upon correcting the latter for the effect of projection. In order to find the parties’ Nash equilibrium positions, an algorithm was utilized that assumed that voting is based on two factors: ideological proximity and party identification. A comparison between left and right and Nash equilibrium positions was made in light of the following question: would parties’ equilibrium positions resemble their left and right positions when the latter were corrected for the effect of projection? Voters’ misperceptions regarding party positions were corrected for the effect of projection by subtracting from each party’s position the value of the coefficient obtained after regressing its position on the difference between the voter’s positions and the party’s position. The results showed that correcting for projection does not diminish the discrepancy between the equilibrium positions and the perceived left and right positions. The reason for this was that the coefficients obtained from the regression analysis were all very close to zero and, therefore, both the parties’ positions and their equilibrium positions remained, in essence, the same upon correcting for projection. The former result drove the analysis for the second type of equilibrium analysis. Here, Finnish parties’ Nash equilibrium positions were calculated upon introducing two important modifications to the previous equilibrium analysis. 13 First, it was assumed that voters’ choices are made on the grounds of mixed model of voting with interaction. The mixed model with interaction relaxed the assumption that voting is based only on proximity characteristics and party identification, and also allowed for mixed proximity-directional effects (a policy issue component) in the voting equation as well as for the interaction between party identification and the policy issue component. Second, in order to account for the fact that mean party placement diminishes the role of directional characteristics in party choice (e.g., Westholm 1997; Gilljam 1997; Krämer and Rattinger 1997; Merrill and Grofman 1999), idiosyncratic party placement was therefore used. The results showed that under the mixed model with interaction, parties’ left and right positions very much resemble their Nash equilibrium positions. On average, the difference between parties’ left and right positions and their Nash equilibrium positions was just 0.69, with a standard deviation of 0.36. Put differently, Finnish parties’ perceived left and right positions, as reported in the Finnish National Election Data Series, are very similar to their vote maximizing positions as computed under the Nash equilibrium analysis. This result can be read as a persuasive reason - albeit not the only one - as to why Finnish parties have maintained stable left and right positions over the course of three successive elections. Tables and Figures Table 1. Left and right positions of Finnish parties 2003-2007-2011 (Data: Finnish National Election Study). Party Centre (KESK) Party Social Democratic Party (SDP) Mean left and right positions 2003 Mean left and right positions 2007 Mean left and right positions 2011 (1) 6.19 s.d.: 1.65 (.0475572) N=1270 (2) 6.51 s.d.: 1.53 (.0411706) N=1422 (3) 6.33 s.d. : 1.61 (.0453472 N=1298 4.70 s.d.: 2.04 (.0610885) 4.13 s.d. :1.89 (.0511774) 4.29 s.d.: 1.79 (.0521112) 14 N=1270 N=1422 N=1298 National Coalition Party (KOK) 7.46 s.d. : 2.11 (.0622608) N=1270 7.94 s.d. : 1.94 (.0541301) N=1422 8.14 s.d. : 1.84 (.0525656) N=1298 Left Alliance (VAS) 2.30 s.d. : 1.83 (.0533356) N=1270 1.86 s.d. : 1.72 (.0459666) N=1422 1.89 s.d. : 1.57 (.0433947) N=1298 Green (VIHR) 4.72 s.d. : 1.67 (.0493883) N=1270 4.74 s.d. : 1.65 (.0467291) N=1422 4.86 s.d. : 1.84 (.0519387) N=1298 Swedish People’s Party (RKP) 6.15 s.d. : 2.17 (.0664) N=1270 6.67 s.d. : 1.98 (.0532514) N=1422 6.85 s.d. : 1.97 (.0565691) N=1298 Christian Democratic (KD) 5.88 s.d. : 1.92 (.0585229) N=1270 5.98 s.d. : 1.80 (.0493579) N=1422 6.03 s.d. : 1.87 (.0543072) N=1298 na 5.78 s.d. : 2.30 (.0627505) N=1422 5.51 s.d. : 2.25 (.0669892) N=1298 League Party True Finns (PS) Notes: s.d.: standard deviation; parenthesized entries are bootstrapped standard errors; N: number of observations. 15 Table 2. Coefficients from a regression analysis (data: FNES 2007) Independent variable: Party placement x Coefficient (Parenthesized entries are standard errors) N .0944576 (.0197816) .0425093† (.0253715) -.0140165† 1013 Dependent variable: D i xi x D iKESK DiSDP DiKOK D iVAS D iVIHR D iRKP D iKD D iPS (.0244865) .0535735* (.0220108) .0017983† (.0225938) -.0207427† (.0258508) 0219937 (.024464) .1245452 (.0324925) 1007 1005 1011 990 984 982 946 Notes: Subscript i stands for the voter; Coefficients are significant at .001 level; *: Significant at .05 level; significant; Parenthesized entries are standard errors 16 † : Not Table 3. Maximum likelihood estimates in a CL model and Nash equilibrium positions after correcting for projection (data: FNES 2007) Political Parties Mean left and right positions before correcting for projection Mean left and right positions after correcting for the effect of projection Nash equilibrium positions after correcting for the effect of projection (1) (2) (3) (4) 6.51 s.d.: 1.53 ( .0411706) N=1422 4.13 s.d.: 1.89 (.0511774) N=1422 7.94 s.d.: 1.94 (.0541301 N=1422 1.86 s.d.: 1.72 (.0459666) N=1422 4.74 s.d.: 1.65 (.0467291) N=1422 6.67 s.d.: 1.98 (.0532514) N=1422 5.98 sd: 1.80 (.0493579) N=1422 5.78 s.d.: 2.30 (.0627505) N=1422 5.45 6.49 s.d.: 1.43 (.0437869) N=1030 3.98 s.d.: 1.81 (.0575188) N=1030 8.21 s.d.: 1.75 (.0553275) N=1030 1.71 s.d.: 1.58 (.0484488) N=1030 4.73 s.d.: 1.60 (.0512773) N=1030 6.90 s.d.: 1.83 (.05841) N=1030 6.10 s.d.: 1.73 (.0556102) N=1030 5.74 s.d.: 2.28 (.0739029) N=1030 5.48 5.88 0.023 1.86 2.00 0.33 KESK SDP KOK VAS VIHR RKP KD PS Mean s.d. 5.22 0.028 6.19 0.048 5.29 0.031 5.50 0.012 5.92 0.027 5.64 0.006 5.61 0.005 5.66 17 Maximum likelihood estimates after correcting a (Policy salience parameter) for projection and robust .0731681 (.0092918) standard errors estimates inside the parentheses B (Party identification parameter) 4.040431 (.1423812) Log likelihood -1036.0101 N 8240 Notes: Entries are significant at p .001 , alpha .05 ; entries in italics are standard errors from a Monte Carlo simulation. Table 4. Parameter estimates from a maximum likelihood analysis for the mixed model (data: FNES 2007) a (Policy salience parameter) 0.1064 (0.0109) B (Party identification parameter) 4.1366 (0.1883) (Mixing parameter) 0.5842 (0.0807) C (Interaction parameter) -0.09984926 (0.0229) Maximum likelihood -892.855 N 920 Notes: Entries are significant at p .001 , alpha .05 , robust standard errors inside the parentheses 18 Table 5. Nash equilibrium positions under the mixed model with interaction (data: FNES 2007) Political Parties (1) Left and right Nash equilibrium Absolute difference positions positions (mixed between (2) and (3) model) (2) (4) (3) KESK 6.51 7.10 0.59 SDP 4.13 4.80 0.67 KOK 7.94 8.20 0.26 VAS 1.86 3.37 1.51 VIHR 4.74 5.49 0.75 RKP 6.67 7.25 0.58 KD 5.98 6.53 0.55 PS 5.78 6.36 0.58 Mean 5.45 6.14 0.69 s.d. 1.86 1.44 0.36 19 Figure 1. Left and right positions and Nash equilibrium positions (data: FNES 2007) References Adams, J. and S. III. 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