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Outcome, Process & Power in Direct Democracy

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  • Bruno S. Frey
  • Marcel Kucher
  • Alois Stutzer

Abstract

Based on survey data for Switzerland, new empirical findings on direct democracy are presented. In the first part, we show that, on average, public employees receive lower financial compensation under more direct democratic institutions. However, top bureaucrats are more constrained in direct de m ocracies and have to be compensated by higher wages for that loss of power. In the second part, we demonstrate that reported subjective well-being of the population is much higher in jurisdictions with stronger direct democratic rights. This is not only the case because people value political outcomes higher but they derive utility from the politcal process itself.

Suggested Citation

  • Bruno S. Frey & Marcel Kucher & Alois Stutzer, 1999. "Outcome, Process & Power in Direct Democracy," CESifo Working Paper Series 222, CESifo.
    • Handle: RePEc:ces:ceswps:_222
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    More about this item

    Keywords

    Direct democracy; power; compensating wage differentials; satisfaction with life; process utility;
    All these keywords.

    JEL classification:

    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions

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