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Political Polarization and the Size of Government

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Author Info
Lindqvist, Erik () (Research Institute of Industrial Economics)
Östling, Robert () (Institute for International Economic Studies, Stockholm University)

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Abstract

We study the effect of political polarization on public spending using the dispersion of self-reported political preferences as our measure of polarization. Political polarization is strongly associated with smaller government in democratic countries, but there is no relationship between polarization and the size of government in undemocratic countries. The results are robust to a large set of control variables, including GDP per capita and income inequality.

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Publisher Info
Paper provided by Stockholm School of Economics in its series Working Paper Series in Economics and Finance with number 628.

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Length: 47 pages
Date of creation: 19 May 2006
Date of revision: 02 Jul 2007
Handle: RePEc:hhs:hastef:0628

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Related research
Keywords: Political polarization; social cohesion; size of government; redistribution;

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Find related papers by JEL classification:
H10 - Public Economics - - Structure and Scope of Government - - - General
H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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  8. Alberto Alesina & Edward Glaeser & Bruce Sacerdote, 2001. "Why Doesn't the United States Have a European-Style Welfare State?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 32(2001-2), pages 187-278. [Downloadable!]
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