Banning political parties is an extreme institutional measure that democracies tend to use sparingly. Nevertheless, Latin American countries frequently proscribe their parties through rules that activate dissolution for not reaching a certain number of votes or seats in an election. Such rules are expected to stabilize and simplify party systems. However, a competing theory suggests that such rules instead promote electoral volatility by injecting political uncertainty into the party system through cyclical refoundation of extinct parties and the mechanical effects of parties’ exits. Attempting to resolve this paradox, this analysis tests the effect of dissolution thresholds on electoral volatility in all Latin American democratic elections since 1980. Party bans based on dissolution thresholds are found to promote electoral volatility, which bears implications for democratic governance.
