Political Ideology and Economic Freedom

Christian Bjornskov ()

No 05-8, Working Papers from University of Aarhus, Aarhus School of Business, Department of Economics

Abstract: This paper examines the association between political ideology and the size of government and quality of the legal system and regulations. A cross-country indicator of government and citizen ideology is presented. Empirical results suggest that ideologically leftwing governments increase the size of government while the long-term ideological convictions of citizens affect the size of government and the quality of the legal system and regulations. These effects depend on the degree of political competition while ideology also affects countries’ institutional response to economic crisis.

Keywords: Political Economy; Institutional Quality; Ideology; Social Norms (search for similar items in EconPapers)
JEL-codes: P16 Z13 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-pol and nep-soc
Date: Written 2005-01-01
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