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The Laakso-Taagepera index of the effective number of parties, while satisfying most of the requirements of this aggregate quantity, tends to produce unrealistically high scores for party constellations in which the shares of the largest parties exceed 50 percent, and can produce misleading results in several other situations. After reviewing the structural properties of the Laakso-Taagepera index and supplements or alternatives to it proposed in the literature, this article proposes a new index that eliminates several problems inherent in the mathematical form of indices using the Herfindahl-Hirschman measure of concentration as computational core. The proposed index is tested on a set of party constellations from recent elections in new democracies and non-democratic electoral regimes. The results confirm that the new index works better than earlier proposed alternatives in measuring the effective number of components in highly fragmented and highly concentrated party systems. [Reprinted by permission of Sage Publications Ltd., copyright holder.]

The effective number of parties, N = 1/Σp(i)2 (where p(i) is the fractional share of the ith party), usually suffices to describe adequately a constellation of parties of different strengths. Difficulties arise when disparity in party sizes is such that the largest share (p1) surpasses 0.50 (meaning absolute dominance), while N still indicates a multi-party constellation. In such cases N(∞) = 1/p1 is proposed as a supplementary indicator: a value less than 2 indicates absolute dominance. An 'NP' index proposed earlier is a combination of N and N(∞); its values are close of those of N(∞), but NP sometimes falls below 2 even when many parties are relevant for coalition formation. Appendix A offers an alternative approach based on indices of deviation from a norm, but it proves cumbersome.

In the presence of a large lumped category of 'Other' parties the effective number of parties cannot be known exactly. Some approaches used produce large discrepancies. This note shows how the effective number still can be estimated with fair accuracy. The same issue arises with the measures of disproportionality between seats and votes. © 1997 Elsevier Science Ltd.

The Laakso—Taagepera index of the effective number of parties, while satisfying most of the requirements of this aggregate quantity, tends to produce unrealistically high scores for party constellations in which the shares of the largest parties exceed 50 percent, and can produce misleading results in several other situations. After reviewing the structural properties of the Laakso—Taagepera index and supplements or alternatives to it proposed in the literature, this article proposes a new index that eliminates several problems inherent in the mathematical form of indices using the Herfindahl—Hirschman measure of concentration as computational core. The proposed index is tested on a set of party constellations from recent elections in new democracies and non-democratic electoral regimes. The results confirm that the new index works better than earlier proposed alternatives in measuring the effective number of components in highly fragmented and highly concentrated party systems.

This note helps to explain how cabinet-level concentration of power is constrained by party level concentration of seats. Arend Lijphart's Patterns of Democracy (1999) measures concentration of executive power by the frequency of minimal winning and one-party cabinets (MW/OP), and party concentration by the effective number (N) of legislative parties. In his factor analysis, these highly correlated indices are the central features that distinguish consensual from majoritarian systems. The present study establishes a quantitative logical relationship leading from N to the major component of MW/OP, so as to explain the reasons behind Lijphart's empirical observation. The note analyses separately the frequency of various types of cabinet coalitions that Lijphart's book has lumped together. It also offers a new way to visualize the effective number of legislative parties, as twice the minimal number of parties needed to form a minimal winning coalition. © 2002, Sage Publications. All rights reserved.

This note helps to explain how cabinet-level concentration of power is constrained by party level concentration of seats. Arend Lijphart's Patterns of Democracy (1999) measures concentration of executive power by the frequency of `minimal winning and one-party cabinets' (MW/OP), and party concentration by the effective number (N) of legislative parties. In his factor analysis, these highly correlated indices are the central features that distinguish consensual from majoritarian systems. The present study establishes a quantitative logical relationship leading from N to the major component of MW/OP, so as to explain the reasons behind Lijphart's empirical observation. The note analyses separately the frequency of various types of cabinet coalitions that Lijphart's book has lumped together. It also offers a new way to visualize the effective number of legislative parties, as twice the minimal number of parties needed to form a minimal winning coalition.