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Political institutions, voter turnout, and policy outcomes

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  • Fumagalli, Eileen
  • Narciso, Gaia

Abstract

This paper tests whether constitutions directly affect economic outcomes. By introducing citizens' political participation as the driving force connecting institutions to policy outcomes, we empirically show that voter turnout is the channel through which forms of government affect economic policies. We provide evidence of the existence of two relationships. First, presidential regimes appear to be associated with lower voter participation in national elections. Second, higher voter participation induces an increase in government expenditure, total revenues, welfare state spending, and budget deficit. We conclude that forms of government affect policy outcomes only through voter turnout.

Suggested Citation

  • Fumagalli, Eileen & Narciso, Gaia, 2012. "Political institutions, voter turnout, and policy outcomes," European Journal of Political Economy, Elsevier, vol. 28(2), pages 162-173.
    • Handle: RePEc:eee:poleco:v:28:y:2012:i:2:p:162-173
    DOI: 10.1016/j.ejpoleco.2011.10.002
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    More about this item

    Keywords

    Electoral rule; Form of government; Voter participation; Policy outcomes;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • H00 - Public Economics - - General - - - General

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