Political fragmentation

Jakob de Haan and Jan-Egbert Sturm

Chapter 80 in Elgar Encyclopedia of Public Choice, 2025, pp 579-590 from Edward Elgar Publishing

Abstract: This chapter reviews studies examining the impact of size and ideological fragmentation on fiscal policy. Size fragmentation captures the effective number of parties in government (or parliament) or the number of spending ministers, while ideological fragmentation refers to ideological differences among parties in government (or opposition). The relevance of size fragmentation has been confirmed by some but certainly not all cross-country or local public finance studies. Results for the impact of ideological fragmentation on fiscal policy are also mixed. More recent studies suggest that size and/or ideological fragmentation may condition the effect of other determinants of fiscal policy (or vice versa).

Keywords: Fiscal policy; Political fragmentation; Size fractionalization; Ideological fractionalization (search for similar items in EconPapers)
Date: 2025
ISBN: 9781802207743
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