Economic Freedom and Government Ideology Across the German States

Niklas Potrafke

No 2011-41, Working Paper Series of the Department of Economics, University of Konstanz from Department of Economics, University of Konstanz

Abstract: This paper examines whether government ideology influenced economic freedom across the German states. The results show that in former West Germany rightwing governments promoted economic freedom, whereas leftwing governments confined it. In former East Germany, however, rightwing governments have not been associated with propagating economic freedom. This finding appears to conflict with the common notion of policy convergence at the federal level. In fact, the observed variation in political preferences across states may indicate that politicians gratify the local electorate and, in return, offer moderate policies at the federal level.

Keywords: economic freedom; government and political ideology; institutions; panel data (search for similar items in EconPapers)
JEL-codes: C23 D72 O52 R11 R50 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2011-10-19
New Economics Papers: this item is included in nep-pol
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Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Economic Freedom and Government Ideology across the German States (2013)
Working Paper: Economic Freedom and Government Ideology across the German States (2013)
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