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The impact of within-party and between-party ideological dispersion on fiscal outcomes: evidence from Swiss cantonal parliaments

Tjaša Bjedov (), Simon Lapointe () and Thierry Madiès
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Thierry Madiès: Université de Fribourg, Faculté des sciences économiques et sociales - Albert-Ludwigs-Universität Freiburg

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Abstract: The impact of the fragmentation of executive and legislative bodies on the level and composition of government expenditure is a political feature that attracted considerable attention from economists. However, previous authors have abstracted from two important concepts : ideology and intra-party politics. In this paper, we explicitly account for these two phenomenons, and make two main contributions. First, we show that both intra-party and interparty ideological dispersion matters in the level of public spending. Therefore, it is incorrect to consider parties as monolithic entities. We also show that ideological dispersion matters especially for current expenditures, and not so much for investment expenditures. To do so, we construct a panel database (2003 to 2011) including data from a survey that quantifies the policy preferences of individual party members that were candidates to federal elections in Switzerland.

Keywords: Public Spending; Political Parties; Ideology; Political Fragmentation (search for similar items in EconPapers)
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Date: 2014
Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-01098755
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Published in Public Choice, Springer Verlag, 2014, 161 (1-2), pp. 209-232. 〈10.1007/s11127-013-0149-8〉

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Journal Article: The impact of within-party and between-party ideological dispersion on fiscal outcomes: evidence from Swiss cantonal parliaments (2014) Downloads
Working Paper: The Impact of Within-Party and Between-Party Ideological Dispersion on Fiscal Outcomes: Evidence from Swiss Cantonal Parliaments (2014) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-01098755

DOI: 10.1007/s11127-013-0149-8

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