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It’s a matter of confidence. Institutions, government stability and economic outcomes

Author

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  • Luca Bettarelli

    (Université Libre de Bruxelles (ULB))

  • Michela Cella

    (University of Milan-Bicocca)

  • Giovanna Iannantuoni

    (University of Milan-Bicocca)

  • Elena Manzoni

    (University of Verona)

Abstract

In this paper we analyse the effect of constitutional structures over policy outcomes. In particular, we exploit the heterogeneity in parliamentary systems deriving from the presence and the use of the confidence vote to investigate whether stable and unstable parliamentary systems behave differently in terms of the policies they implement. This finer partition of parliamentary systems allows us to identify effects that are more robust than the ones previously discussed in the literature. We show that the difference between presidential and parliamentary systems documented in previous works is driven by a difference between presidential and stable parliamentary systems. We suggest that possible transmission channels are legislative cohesion and (the absence of) selection.

Suggested Citation

  • Luca Bettarelli & Michela Cella & Giovanna Iannantuoni & Elena Manzoni, 2021. "It’s a matter of confidence. Institutions, government stability and economic outcomes," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(2), pages 709-738, July.
    • Handle: RePEc:spr:epolit:v:38:y:2021:i:2:d:10.1007_s40888-020-00210-8
    DOI: 10.1007/s40888-020-00210-8
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    1. Michela Cella & Giovanna Iannantuoni & Elena Manzoni, 2017. "Do the Right Thing: Incentives for Policy Selection in Presidential and Parliamentary Systems," Economica, London School of Economics and Political Science, vol. 84(335), pages 430-453, July.

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    More about this item

    Keywords

    Presidential system; Parliamentary system; Confidence vote; Government stability;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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