It's a matter of confidence: Institutions, government stability and economic outcomes

Luca Bettarelli (), Michela Cella, Giovanna Iannantuoni and Elena Manzoni

No 309, Working Papers from University of Milano-Bicocca, Department of Economics

Abstract: The effect of constitutional structures (such as the effect of a presidential vs. a parliamentary system) over policy outcomes has been widely studied in the economic literature. In this paper, we investigate whether stable parliamentary systems and unstable parliamentary systems behave differently in terms of the policy outcomes they implement. We show that accounting for the stability of parliamentary systems generates results that are more robust compared to the previous literature. More precisely, we find that stable parliamentary systems are significantly different both from presidential and from unstable parliamentary ones. Moreover, we show that this result is robust to changes in the set of countries, and to changes in the definition of stability. Finally, we discuss how these results are consistent with the presence of a selection effect in parliamentary systems.

Keywords: presidential system; parliamentary system; confidence requirement; government stability (search for similar items in EconPapers)
JEL-codes: C72 D72 (search for similar items in EconPapers)
Pages: 28
Date: 2015-09, Revised 2015-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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http://repec.dems.unimib.it/repec/pdf/mibwpaper309.pdf First version, 2015 (application/pdf)

Related works:
Journal Article: It’s a matter of confidence. Institutions, government stability and economic outcomes (2021)
Working Paper: It's a matter of confidence: Institutions, government stability and economic outcomes (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:mib:wpaper:309

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