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Is German Domestic Social Policy Politically Controversial?

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Author Info

  • Niklas Potrafke

    () (Department of Economics, University of Konstanz, Germany)

Abstract

This paper investigates empirically the influence of government ideology on social policy using German data. Examining the funding and the benefits of social security and public healthcare policy, my results suggest that policies implemented by governments dominated by left- and rightwing parties were similar over the 1951-2007 period. Leftwing governments, however, spent more in the 1970s and rightwing governments did so after German Reunification in 1990. Since policy convergence encourages new parties to enter the political arena, and party platforms on social policy matters are likely to undergo further changes in light of demographic change, the observed pattern may thus be a transitory phenomenon.

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Bibliographic Info

Paper provided by Department of Economics, University of Konstanz in its series Working Paper Series of the Department of Economics, University of Konstanz with number 2011-06.

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Length: 43 pages
Date of creation: 26 Apr 2011
Date of revision:
Handle: RePEc:knz:dpteco:1106

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Related research

Keywords: social policy; political business and partisan cycles; government ideology; policy polarization; demographic change;

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References

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  1. Michael M. Bechtel & Roland Füss, 2010. "Capitalizing on Partisan Politics? The Political Economy of Sector-Specific Redistribution in Germany," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 42(2-3), pages 203-235, 03.
  2. Bjørnskov, Christian, 2008. "The growth-inequality association: Government ideology matters," Journal of Development Economics, Elsevier, vol. 87(2), pages 300-308, October.
  3. De Donder, Philippe & Hindriks, Jean, 2007. "Equilibrium Social Insurance with Policy-Motivated Parties ," Open Access publications from University of Toulouse 1 Capitole http://neeo.univ-tlse1.fr, University of Toulouse 1 Capitole.
  4. Timothy J. Goodspeed & Yvon Rocaboy & Benoit Le Maux, 2011. "Political fragmentation, Party ideology and Public expenditures," Hunter College Department of Economics Working Papers 435, Hunter College: Department of Economics.
  5. Roland Füss & Michael Bechtel, 2008. "Partisan politics and stock market performance: The effect of expected government partisanship on stock returns in the 2002 German federal election," Public Choice, Springer, vol. 135(3), pages 131-150, June.
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Citations

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Cited by:
  1. Mario Mechtel & Niklas Potrafke, 2011. "Electoral Cycles in Active Labor Market Policies," Working Paper Series of the Department of Economics, University of Konstanz 2011-39, Department of Economics, University of Konstanz.
  2. Patrick Laurency & Dirk Schindler, 2011. "International Climate Agreements, Cost Reductions and Convergence of Partisan Politics," CESifo Working Paper Series 3591, CESifo Group Munich.
  3. Niklas Potrafke, 2011. "Economic Freedom and Government Ideology Across the German States," Working Paper Series of the Department of Economics, University of Konstanz 2011-41, Department of Economics, University of Konstanz.
  4. Axel Dreher & Peter Nunnenkamp & Maya Schmaljohann, 2013. "The Allocation of German Aid: Self-interest and Government Ideology," Kiel Working Papers 1817, Kiel Institute for the World Economy.

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