EconPapers    
Economics at your fingertips  
 

Political frictions and public policy outcomes

Daryna Grechyna ()

Journal of Comparative Economics, 2016, vol. 44, issue 3, 484-495

Abstract: We study the role of political frictions in public policy outcomes. We propose a simple model of fiscal policy that combines a lack of commitment by the government, political turnover, and another political friction that can be interpreted either as political polarization or as public rent-seeking. We show that political turnover increases public debt levels, while political polarization or public rent-seeking leads to higher public spending. We evaluate the importance of different political frictions for fiscal policy outcomes using a sample of twenty developed countries. We find that the data on political instability combined with the data on public rent-seeking explain 25% of the variation in public debt levels.

Keywords: Fiscal policy; Political turnover; Political polarization; Public rent-seeking (search for similar items in EconPapers)
JEL-codes: E62 H11 K42 P26 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0147596716300312
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jcecon:v:44:y:2016:i:3:p:484-495

Access Statistics for this article

Journal of Comparative Economics is currently edited by D. Berkowitz and G. Roland

More articles in Journal of Comparative Economics from Elsevier
Series data maintained by Dana Niculescu ().

 
Page updated 2017-10-05
Handle: RePEc:eee:jcecon:v:44:y:2016:i:3:p:484-495