POLITICAL IDEOLOGY AND ECONOMIC GROWTH: EVIDENCE FROM THE FRENCH DEMOCRACY

François Facchini and Mickael Melki

Economic Inquiry, 2014, vol. 52, issue 4, 1408-1426

Abstract: type="main" xml:id="ecin12100-abs-0001"> We provide a test of the impact of voters' political ideology on economic growth and of the role of preferences for government size as a transmission channel. We focus on France from the beginning of its stable democratic experience in 1871. A move of voters' ideology to the right increases economic growth over the total observation period. However, the growth effect of ideology is mediated by voters' preferences for government size only during the post-World War II period. For reverse causality concerns, we use the political ideology of other historical democracies as an instrument variable for France's ideology. (JEL E6, O43, H11)

Date: 2014
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Related works:
Working Paper: Political Ideology and Economic Growth: Evidence from the French Democracy (2014)
Working Paper: Political Ideology and Economic Growth: Evidence from the French Democracy (2014)
Working Paper: Political Ideology and Economic Growth: Evidence from the French Democracy (2013)
Working Paper: Political Ideology and Economic Growth: Evidence from the French Democracy (2013)
Working Paper: Political Ideology and Economic Growth: Evidence from the French Democracy (2013)
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