Executive Decree Authority in Brazil: How Reactive Legislators Influence Policy

At first glance, wide‐ranging presidential decree authority suggests executive branch domination of legislatures. However, decree power may also be a rational delegation of authority by legislators, in accord with their political objectives. Seen in this light, the key issue for legislators is not halting decree authority but reducing the agency losses that result from delegation. This paper shows how decree authority, as practiced in Brazil, constitutes an example of rational delegation by a legislature in which seniority and policy specialization are relatively undervalued. Brazilian legislators prefer to endow presidents with broad decree power and then monitor presidents on an issue‐by‐issue basis by amending executive decrees. This method of “oversight after delegation” lowers the transaction costs of delegation and speaks to the influence of Brazilian legislators over what is typically seen as an important source of presidential power.