Austerity and Anarchy: Budget Cuts and Social Unrest in Europe, 1919-2008
AbstractDoes fiscal consolidation lead to social unrest? Using cross-country evidence for the period 1919 to 2008, we examine the extent to which societies become unstable after budget cuts. The results show a clear correlation between fiscal retrenchment and instability. We test if the relationship simply reflects economic downturns, and conclude that this is not the case. While autocracies and democracies show a broadly similar responses to budget cuts, countries with more constraints on the executive are less likely to see unrest after austerity measures. Growing media penetration does not strengthen the effect of cut-backs on the level of unrest.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 8513.
Date of creation: Aug 2011
Date of revision:
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Other versions of this item:
- Jacopo Ponticelli & Hans-Joachim Voth, 2012. "Austerity and Anarchy: Budget Cuts and Social Unrest in Europe, 1919-2008," Working Papers 676, Barcelona Graduate School of Economics.
- Jacopo Ponticelli & Joachim Voth, 2011. "Austerity and anarchy: Budget cuts and social unrest in Europe, 1919-2008," Economics Working Papers 1342, Department of Economics and Business, Universitat Pompeu Fabra, revised Oct 2012.
- H40 - Public Economics - - Publicly Provided Goods - - - General
- H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
- H60 - Public Economics - - National Budget, Deficit, and Debt - - - General
- N14 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: 1913-
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-08-15 (All new papers)
- NEP-EEC-2011-08-15 (European Economics)
- NEP-HIS-2011-08-15 (Business, Economic & Financial History)
- NEP-POL-2011-08-15 (Positive Political Economics)
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Austerity and Anarchy: Budget Cuts and Social Unrest in Europe, 1919-2009
by bbatiz in NEP-HIS blog on 2011-08-21 11:42:59
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