Representative democracy is experiencing a legitimacy crisis. There are growing concerns among citizens that political representatives do not properly represent them or act in their best interests. It is perhaps not surprising that the last decade has seen an increase in movements around the globe taking the form of massive demonstrations advocating for a democratic change. One recurring demand has been for more direct political decision-making power for citizens. More specifically, people have sought the introduction of direct democratic institutions. Paradoxically, in countries where direct democracy is regularly practiced, some have voiced criticisms of the direct democratic institutions themselves. The debates regarding the merits and pitfalls of direct democracy tend to assume that one should opt for either direct democracy or representative democracy. However, rather than replacing representative institutions, the introduction of direct democratic institutions adds an additional institutional layer to these existing representative institutions. With its focus on two of the countries with perhaps the longest traditions of direct democracy—the United States and Switzerland, which were once “sister republics”—the dissertation offers an original analysis of the interplay between direct democracy and representative democracy.