Do Political Institutions Shape Economic Policy?
Torsten Persson ()
No 8214, NBER Working Papers from National Bureau of Economic Research, Inc
Do political institutions shape economic policy? I argue that this question should naturally appeal to economists. Moreover, the answer is in the affirmative, both in theory and in practice. In particular, recent theoretical work predicts systematic eects of electoral rules and political regimes on the size and composition of government spending. And results from ongoing empirical work indicate that such eect are indeed present in international panel data. Some empirical results are consistent with theoretical predictions: presidential regimes have smaller governments and countries with majoritarian elections have smaller welfare-state programs and less corruption. Other results present puzzles for future research: the adjustment to economic events is clearly institution-dependent, as is the timing and nature of the electoral cycle.
JEL-codes: D7 E6 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-pke
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (25) Track citations by RSS feed
Published as Persson, Torsten. "Do Political Institutions Shape Economic Policy," Econometrica, 2002, v70(3,May), 883-905.
Downloads: (external link)
Journal Article: Do Political Institutions Shape Economic Policy? (2002)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:nbr:nberwo:8214
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in NBER Working Papers from National Bureau of Economic Research, Inc
Address: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Contact information at EDIRC.
Series data maintained by ().