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Outcome, Process & Power in Direct Democracy

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Author Info

  • 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.

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Bibliographic Info

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 222.

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Date of creation: 1999
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Handle: RePEc:ces:ceswps:_222

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Keywords: Direct democracy; power; compensating wage differentials; satisfaction with life; process utility;

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References

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  1. Alois Stutzer, . "Demokratieindizes für die Kantone der Schweiz," IEW - Working Papers 023, Institute for Empirical Research in Economics - University of Zurich.
  2. Oswald, Andrew J, 1997. "Happiness and Economic Performance," Economic Journal, Royal Economic Society, vol. 107(445), pages 1815-31, November.
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  4. Bohnet, Iris & Frey, Bruno S, 1994. "Direct-Democratic Rules: The Role of Discussion," Kyklos, Wiley Blackwell, vol. 47(3), pages 341-54.
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  8. Frey, Bruno S, 1994. "Direct Democracy: Politico-economic Lessons from Swiss Experience," American Economic Review, American Economic Association, vol. 84(2), pages 338-42, May.
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Citations

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Cited by:
  1. Klaus Zimmermann & Tobias Just, 2000. "Interest Groups, Referenda, and the Political Process: On the Efficiency of Direct Democracy," Constitutional Political Economy, Springer, vol. 11(2), pages 147-163, June.
  2. Hausken, Kjell & Knutsen, John F., 2010. "An enabling mechanism for the creation, adjustment, and dissolution of states and governmental units," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 4(32), pages 1-38.
  3. Kjell Hausken & John F. Knutsen, 2002. "The Birth, Adjustment and Death of States," Public Economics 0205004, EconWPA.
  4. Schenk-Hoppe, Klaus Reiner & Schmalfu[ss], Bjorn, 2001. "Random fixed points in a stochastic Solow growth model," Journal of Mathematical Economics, Elsevier, vol. 36(1), pages 19-30, September.
  5. Jens-Ulrich Peter & Klaus Reiner Schenk-Hoppé, . "Business Cycle Phenomena in Overlapping Generations Economies with Stochastic Production," IEW - Working Papers 030, Institute for Empirical Research in Economics - University of Zurich.
  6. DAVID DORN & Justina Fischer & GEBHARD KIRCHGÄSSNER & ALFONSO SOUSA-POZA, 2005. "Is It Culture or Democracy? The Impact of Democracy, Income, and Culture on Happiness," University of St. Gallen Department of Economics working paper series 2005 2005-12, Department of Economics, University of St. Gallen.
  7. David Dorn & Justina Fischer & Gebhard Kirchgässner & Alfonso Sousa-Poza, 2008. "Direct democracy and life satisfaction revisited: new evidence for Switzerland," Journal of Happiness Studies, Springer, vol. 9(2), pages 227-255, June.
  8. Fischer, Anke & Hespelt, Sonja K. & Marggraf, Rainer, 2003. "Ermittlung der Nachfrage nach ökologischen Gütern der Landwirtschaft – Das Northeim-Projekt," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 52(8).

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