ABSTRACT
Cabinet change can be a very useful tool, albeit one that should be used carefully. This chapter discusses the relevant literature that explains two issues in cabinet politics: agency problems, and solutions to these problems. The agency problems fall rather coarsely into one of three large classes of problems: agency rent, moral hazard, and adverse selection. Solutions to these problems can be explored as careful ministerial selection and cabinet change. The cabinet plays an essential role in the functioning of government, while cabinet change is central to accountability mechanisms and representative democracy. In the United States, the cabinet was first created as a source of advice to the president. The role of the cabinet has now shifted more to domestic and international policy implementation. Cabinets in parliamentary systems have a strong collective character that is not present in the cabinets of presidential systems. In presidential systems, some presidents have faced institutional restrictions to their ability to dismiss cabinet secretaries.
