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The economic effects of constitutions: replicating—and extending—Persson and Tabellini

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  • Lorenz Blume
  • Jens Müller
  • Stefan Voigt
  • Carsten Wolf

Abstract

Persson and Tabellini (2003) show that presidential regimes and majoritarian election systems have important effects on fiscal policy, government effectiveness and productivity. Here, their dataset is extended in a number of ways: the number of countries included is increased from 85 to up to 116, and more recent data for both government effectiveness and productivity are used. In replicating and extending their analyses, we find that the effect of presidential regimes on all three groups of economic variables vanishes almost entirely. With regard to electoral systems, the original results are largely confirmed: majoritarian (as opposed to proportional) electoral systems lead to lower government expenditure, lower levels of rent seeking but also lower output per worker. The institutional details such as the proportion of candidates that are not elected via party lists and the district magnitude have proved to be of particular importance. The question whether societies can improve their lot by choosing specific constitutional rules remains open.
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Suggested Citation

  • Lorenz Blume & Jens Müller & Stefan Voigt & Carsten Wolf, 2009. "The economic effects of constitutions: replicating—and extending—Persson and Tabellini," Public Choice, Springer, vol. 139(1), pages 197-225, April.
    • Handle: RePEc:kap:pubcho:v:139:y:2009:i:1:p:197-225
    DOI: 10.1007/s11127-008-9389-4
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    References listed on IDEAS

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    1. Charles B. Blankart & Gerrit B. Koester, 2006. "Political Economics versus Public Choice," Kyklos, Wiley Blackwell, vol. 59(2), pages 171-200, May.
    2. Torsten Persson & Gérard Roland & Guido Tabellini, 1997. "Separation of Powers and Political Accountability," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1163-1202.
    3. Nicola Persico & Alessandro Lizzeri, 2001. "The Provision of Public Goods under Alternative Electoral Incentives," American Economic Review, American Economic Association, vol. 91(1), pages 225-239, March.
    4. Pommerehne, Werner W & Frey, Bruno S, 1978. "Bureaucratic Behavior in Democracy: A Case Study," Public Finance = Finances publiques, , vol. 33(1-2), pages 98-112.
    5. Iversen, Torben & Soskice, David, 2006. "Electoral Institutions and the Politics of Coalitions: Why Some Democracies Redistribute More Than Others," American Political Science Review, Cambridge University Press, vol. 100(2), pages 165-181, May.
    6. David Austen-Smith, 2000. "Redistributing Income under Proportional Representation," Journal of Political Economy, University of Chicago Press, vol. 108(6), pages 1235-1269, December.
    7. Daron Acemoglu, 2005. "Constitutions, Politics and Economics: A Review Essay on Persson and Tabellini's "The Economic Effect of Constitutions"," NBER Working Papers 11235, National Bureau of Economic Research, Inc.
    8. Brennan, Geoffrey & Kliemt, Hartmut, 1994. "Finite Lives and Social Institutions," Kyklos, Wiley Blackwell, vol. 47(4), pages 551-571.
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    More about this item

    Keywords

    Constitutional economics; Form of government; Electoral rules; Fiscal policy; Governance; Productivity; D72; E60; H00;
    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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    This item is featured on the following reading lists, Wikipedia, or ReplicationWiki pages:
    1. The Economic Effects of Constitutions: Replicating – and Extending – Persson and Tabellini (Public Choice 2009) in ReplicationWiki

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