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Reconsidering the fiscal effects of constitutions

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  • Rockey, James

Abstract

This paper reconsiders Persson and Tabellini's (2003, 2004) analysis of the causal effect of constitution type on government size. It addresses the concerns of Acemoglu (2005) and makes some measurement and methodological refinements to the identification strategy to argue there is a qualitatively large and statistically significant relationship between constitution type and government size. The age of a democracy is of increased importance in the new identification strategy, but existing measures of when countries became democracies are shown to be flawed. Two new measures of the age of a democracy are introduced. The first details when a country first had a genuinely democratic election, the second when its current constitution was promulgated.

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Bibliographic Info

Article provided by Elsevier in its journal European Journal of Political Economy.

Volume (Year): 28 (2012)
Issue (Month): 3 ()
Pages: 313-323

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Handle: RePEc:eee:poleco:v:28:y:2012:i:3:p:313-323

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Web page: http://www.elsevier.com/locate/inca/505544

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Keywords: Government spending; Constitutions; Instrumental variables;

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Cited by:
  1. James Rockey & Miltiadis Makris, 2010. "Which Democracies Pay Higher Wages?," Discussion Papers in Economics, Department of Economics, University of Leicester 11/09, Department of Economics, University of Leicester.
  2. Maria Franco & Carlos Scartascini & Mariano Tommasi, 2014. "State Capacity and the Quality of Policies: Revisiting the Relationship between Openness and the Size of Government," IDB Publications 86254, Inter-American Development Bank.

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