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Economic growth and the rise of political extremism: theory and evidence

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  • Brückner, Markus
  • Grüner, Hans Peter

Abstract

In many western democracies, political parties with extreme platforms challenge more moderate incumbents. This paper analyses the impact of economic growth on the support for extreme political platforms. We provide a theoretical argument in favor of growth effects (as opposed to level effects) on the support for extremist parties and we empirically investigate the relationship between growth and extremist votes. A lower growth rate increases the support for extreme political platforms but our estimates also indicate that extreme platforms are unlikely to gain majorities in OECD countries, unless there is an extreme drop in the GDP per capita growth rate.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 7723.

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Date of creation: Mar 2010
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Handle: RePEc:cpr:ceprdp:7723

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Keywords: Economic Growth; Political Regimes;

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  1. Blundell, R. & Bond, S., 1995. "Initial Conditions and Moment Restrictions in Dynamic Panel Data Models," Economics Papers 104, Economics Group, Nuffield College, University of Oxford.
  2. Beck, T.H.L. & Clarke, G. & Groff, A. & Keefer , P. & Walsh, P., 2001. "New tools in comparative political economy: The database of political institutions," Open Access publications from Tilburg University urn:nbn:nl:ui:12-3125517, Tilburg University.
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