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Parliamentary Dynamics and Fiscal Policy

Author

Listed:
  • Baldini, A.

Abstract

In parliamentary demacracies, fiscal policies may be threatened by the unexpected termination of government tenure or by strong budget procedures. Our model implies that electoral rule and the type of the budgetary process help explain some of the striking differences observed in public finance and government stability in post-war democratic countries. We provide new evidence for 17 OECD countries during post-war period: in multi-party governments, economic variables that create redistributive effects are harmful for government tenures while economic growth and weak budgetary procedures are beneficial for government tenures.

Suggested Citation

  • Baldini, A., 1998. "Parliamentary Dynamics and Fiscal Policy," DELTA Working Papers 98-20, DELTA (Ecole normale supérieure).
    • Handle: RePEc:del:abcdef:98-20
    as

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    More about this item

    Keywords

    FISCAL POLICY ; POLITICAL STABILITY ; MATHEMATICAL ANALYSIS;
    All these keywords.

    JEL classification:

    • H1 - Public Economics - - Structure and Scope of Government
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling

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