In this paper we consider a dynamic model of government formation in parlia
mentary democracies that accounts for the following phenomena: (1) minority
and surplus governments; (2) cabinet reshuffles; (3) cabinet terminations
due to replacement of early elections; (4) the relative instability of mino
rity governments. Journal of Economic Literature Classification Numbers: D7
2 . H19. C73. (C) 2000 Academic Press.