Words speak louder than actions: The impact of politics on economic performance
Steffen Osterloh ()
No 10-092, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research
In this paper, a new approach to disclose the impact of politics on economic growth is presented: we use data derived from content analysis of party manifestos as measures of party preferences. In a panel of 23 OECD countries, we detect a positive impact of party support for various market-liberal policies on economic performance. In particular, we show that parties which were more concerned with market interventions and - to a lesser extent - welfare state policies impacted on growth negatively; those which proposed incentives for business as well as technology and infrastructure had a positive impact. Moreover, the robustness of the results is demonstrated in a model averaging framework.
Keywords: economic growth; political economy; ideology; panel data; model averaging (search for similar items in EconPapers)
JEL-codes: H11 O40 P16 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mic and nep-pol
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Journal Article: Words speak louder than actions: The impact of politics on economic performance (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:10092
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