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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
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:
Contact details of provider:
Postal: Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ.
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820
Other versions of this item:
- 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.
- 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.
- 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)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- John Ferejohn, 1986. "Incumbent performance and electoral control," Public Choice, Springer, vol. 50(1), pages 5-25, January.
- de Bromhead, Alan & Eichengreen, Barry & O'Rourke, Kevin H., 2012.
"Right Wing Political Extremism in the Great Depression,"
CEPR Discussion Papers
8876, C.E.P.R. Discussion Papers.
- Kevin HjortshÃ¸j O'Rourke & Alan de Bromhead, 2012. "Right Wing Political Extremism in the Great Depression," Economics Series Working Papers Number 95, University of Oxford, Department of Economics.
- Alan de Bromhead & Barry Eichengreen & Kevin H. O'Rourke, 2012. "Right-Wing Political Extremism in the Great Depression," NBER Working Papers 17871, National Bureau of Economic Research, Inc.
- Alan de Bromhead & Barry Eichengreen & Kevin H.O’Rourke, 2012. "Right Wing Political Extremism in the Great Depression," Oxford University Economic and Social History Series _095, Economics Group, Nuffield College, University of Oxford.
- Daron Acemoglu & James A. Robinson, 2000.
"Why Did The West Extend The Franchise? Democracy, Inequality, And Growth In Historical Perspective,"
The Quarterly Journal of Economics,
MIT Press, vol. 115(4), pages 1167-1199, November.
- Acemoglu, Daron & Robinson, James A, 1998. "Why did the West Extend the Franchise? Democracy, Inequality and Growth in Historical Perspective," CEPR Discussion Papers 1797, C.E.P.R. Discussion Papers.
- Nicholas Bloom, 2007.
"The Impact of Uncertainty Shocks,"
NBER Working Papers
13385, National Bureau of Economic Research, Inc.
- Alesina, A. & Drazen, A., 1991.
"Why Are Stabilizations Delayed?,"
6-91, Tel Aviv - the Sackler Institute of Economic Studies.
- Timur Kuran, 1989. "Sparks and prairie fires: A theory of unanticipated political revolution," Public Choice, Springer, vol. 61(1), pages 41-74, April.
- Christina D. Romer & David H. Romer, 1989.
"Does Monetary Policy Matter? A New Test in the Spirit of Friedman and Schwartz,"
NBER Working Papers
2966, National Bureau of Economic Research, Inc.
- Christina D. Romer & David H. Romer, 1989. "Does Monetary Policy Matter? A New Test in the Spirit of Friedman and Schwartz," NBER Chapters, in: NBER Macroeconomics Annual 1989, Volume 4, pages 121-184 National Bureau of Economic Research, Inc.
- Christina D. Romer and David H. Romer., 1989. "Does Monetary Policy Matter? A New Test in the Spirit of Friedman and Schwartz," Economics Working Papers 89-107, University of California at Berkeley.
- Romer, Christina D. & Romer, David H., 1989. "Does Monetary Policy Matter? A New Test in the Spirit of Friedman and Schwartz," Department of Economics, Working Paper Series qt5h07k8vf, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Grossman, Herschel I, 1991. "A General Equilibrium Model of Insurrections," American Economic Review, American Economic Association, vol. 81(4), pages 912-21, September.
- Joachim Voth, 2011. "Tightening Tensions: Fiscal Policy and Civil Unrest in Eleven South American Countries, 1937 - 1995," Working Papers Central Bank of Chile 612, Central Bank of Chile.
- DiPasquale, Denise & Glaeser, Edward L., 1998. "The Los Angeles Riot and the Economics of Urban Unrest," Journal of Urban Economics, Elsevier, vol. 43(1), pages 52-78, January.
- Andrea Pescatori & Daniel Leigh & Jaime Guajardo & Pete Devries, 2011. "A New Action-Based Dataset of Fiscal Consolidation," IMF Working Papers 11/128, International Monetary Fund.
- King, R.G. & Baxter, M., 1990.
"Fiscal Policy In General Equilibrium,"
RCER Working Papers
244, University of Rochester - Center for Economic Research (RCER).
- Anjali Thomas Bohlken & Ernest John Sergenti, 2010. "Economic growth and ethnic violence: An empirical investigation of Hinduâ€”Muslim riots in India," Journal of Peace Research, Peace Research Institute Oslo, vol. 47(5), pages 589-600, September.
- Daniel Leigh & Andrea Pescatori & Jaime Guajardo, 2011. "Expansionary Austerity New International Evidence," IMF Working Papers 11/158, International Monetary Fund.
- Valerie A. Ramey, 2011.
"Identifying Government Spending Shocks: It's all in the Timing,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 126(1), pages 1-50.
- Valerie A. Ramey, 2009. "Identifying Government Spending Shocks: It's All in the Timing," NBER Working Papers 15464, National Bureau of Economic Research, Inc.
- Olivier Jean Blanchard, 1990. "Suggestions for a New Set of Fiscal Indicators," OECD Economics Department Working Papers 79, OECD Publishing.
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
- Andini, Corrado & Cabral, Ricardo, 2012. "Further Austerity and Wage Cuts Will Worsen the Euro Crisis," IZA Policy Papers 37, Institute for the Study of Labor (IZA).
- Kevin H. O'Rourke & Alan M. Taylor, 2013. "Cross of Euros," Journal of Economic Perspectives, American Economic Association, vol. 27(3), pages 167-92, Summer.
- Francesco Passarelli & Guido Tabellini, 2013.
"Emotions and Political Unrest,"
474, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Waśniewski, Krzysztof, 2012. "Local governments’ fiscal policy as a factor of urban development – evidence from Poland," MPRA Paper 39176, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.