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Economic Freedom and Government Ideology Across the German States

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  • Niklas Potrafke

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

Abstract

This paper examines whether government ideology influenced economic freedom across the German states. The results show that in former West Germany rightwing governments promoted economic freedom, whereas leftwing governments confined it. In former East Germany, however, rightwing governments have not been associated with propagating economic freedom. This finding appears to conflict with the common notion of policy convergence at the federal level. In fact, the observed variation in political preferences across states may indicate that politicians gratify the local electorate and, in return, offer moderate policies at the federal level.

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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 2011-41.

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Length: 36 pages
Date of creation: 19 Oct 2011
Date of revision:
Handle: RePEc:knz:dpteco:1141

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Keywords: economic freedom; government and political ideology; institutions; panel data;

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Citations

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Cited by:
  1. Kauder, Björn & Potrafke, Niklas, 2013. "Government ideology and tuition fee policy: Evidence from the German States," Munich Reprints in Economics 19532, University of Munich, Department of Economics.
  2. Markus Reischmann, 2014. "Staatsverschuldung in Extrahaushalten: Historischer Überblick und Implikationen für die Schuldenbremse in Deutschland," Ifo Working Paper Series Ifo Working Paper No. 175, Ifo Institute for Economic Research at the University of Munich.
  3. Baskaran, Thushyanthan, 2012. "Ideology and fiscal policy: quasi-experimental evidence from the German States," Center for European, Governance and Economic Development Research Discussion Papers 144, University of Goettingen, Department of Economics.
  4. Niklas Potrafke, 2013. "Evidence on the political principal-agent problem fromvoting on public finance for concert halls," Ifo Working Paper Series Ifo Working Paper No. 164, Ifo Institute for Economic Research at the University of Munich.
  5. Björn Kauder & Niklas Potrafke, 2013. "Regierungsideologie und Studiengebühren in den deutschen Bundesländern," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 66(10), pages 19-24, 05.
  6. Baskaran, Thushyanthan, 2012. "Ideology and fiscal policy: quasi-experimental evidence from the German States," Center for European, Governance and Economic Development Research Discussion Papers 144, University of Goettingen, Department of Economics.
  7. Krishna Chaitanya Vadlamannati & Arusha Cooray, 2012. "What Drives FDI Policy Liberalization? An Empirical Investigation," CAMA Working Papers 2012-27, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.

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