Institutional constraints on profligate politicians: the conditional effect of partisan fragmentation on budget deficits

Joachim Wehner

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: The literature on the common pool resource problem in budgeting has thus far not explored the likely interaction between size fragmentation (the number of decision makers) and procedural fragmentation (the structure of the process in which they interact).The argument put forward in this article is that the effects of these two types of fragmentation should not be additive, but multiplicative, because theory suggests that the impact of size fragmentation on fiscal policy is conditional on the extent of procedural fragmentation. Using panel data for 57 countries over the period of 1975 to 1998, the author empirically investigates this interaction in the legislative context and finds strong evidence that partisan fragmentation is associated with higher deficits only when it is not moderated by limits on parliamentary amendment authority.

Keywords: budget institution; deficit; fiscal policy; legislature; political party (search for similar items in EconPapers)
JEL-codes: E6 (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Published in Comparative Political Studies, 2010, 43(2), pp. 208-229. ISSN: 0010-4140

Downloads: (external link)
http://eprints.lse.ac.uk/28649/ Open access version. (application/pdf)

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:ehl:lserod:28649

Access Statistics for this paper

More papers in LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library LSE Library Portugal Street London, WC2A 2HD, U.K.. Contact information at EDIRC.
Bibliographic data for series maintained by LSERO Manager ().