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The Institutional Foundations of Public Policy

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  • Mariano Tommasi

    ()
    (Department of Economics, Universidad de San Andres)

Abstract

The effects of public policies on social and economic outcomes depend on some fundamental state capacities, such as the ability to commit to a policy course; the ability to adjust policies when circumstances change; and the ability to coordinate, enforce, and implement policies. In a democratic polity, such capabilities are built on some degree of consensus and intertemporal cooperation among key political actors; better policies emerge if participants in the policymaking process can cooperate with one another to uphold agreements and sustain them over time. This paper explores the institutional determinants of such capabilities, with a focus on the political system. It argues that effective public policies are facilitated by institutionalized and programmatic political parties, legislators with sound policymaking capabilities, independent judiciaries, and strong bureaucracies. Such “institutional blessings” develop slowly over time, and the incentives of politicians and government officials, as well as their interaction with other societal actors, are crucial for their development. The paper concludes by warning economists and other policy specialists that institutions and processes might be more important than policies. Advocates and advisors have to think twice before forcing a favorite policy onto a polity at the expense of violating principles such as a reasonable degree of societal consensus, congressional debate, or judicial independence.

(This abstract was borrowed from another version of this item.)

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File URL: ftp://webacademicos.udesa.edu.ar/pub/econ/doc90.pdf
File Function: First version, 2005
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Bibliographic Info

Paper provided by Universidad de San Andres, Departamento de Economia in its series Working Papers with number 90.

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Length: 49 pages
Date of creation: Nov 2005
Date of revision: Dec 2005
Handle: RePEc:sad:wpaper:90

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Related research

Keywords: institutions; public policy;

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References

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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.:
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  1. Mariano Tommasi, 1995. "Where are we in the Political Economy of Reform?," UCLA Economics Working Papers 733, UCLA Department of Economics.
  2. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
  3. Mariano Tommasi & Pablo T. Spiller, 2000. "The Institutional Foundations of Public Policy: A Transactions Approach with Application to Argentina," Working Papers 29, Universidad de San Andres, Departamento de Economia, revised May 2000.
  4. Mariano Tommasi & Pablo T. Spiller & Ernesto Stein, 2003. "Political Institutions, Policymaking Processes, and Policy Outcomes. An Intertemporal Transactions Framework," Working Papers 59, Universidad de San Andres, Departamento de Economia, revised Jul 2003.
  5. Eduardo Lora & Ugo Panizza, 2002. "Structural Reforms in Latin America under Scrutiny," Research Department Publications 4303, Inter-American Development Bank, Research Department.
  6. Mariano Tommasi & Matias Iaryczower & Pablo T. Spiller, 2002. "Judicial Decision Making in Unstable Environments, Argentina 1935-1998," Working Papers 30, Universidad de San Andres, Departamento de Economia, revised Oct 2002.
  7. Rauch, James E & Evans, Peter B., 1999. "Bureaucratic Structure and Bureaucratic Performance in Less Developed Countries," University of California at San Diego, Economics Working Paper Series qt0sb0w38d, Department of Economics, UC San Diego.
  8. Avinash Dixit & Gene M. Grossman & Faruk Gul, 2000. "The Dynamics of Political Compromise," Journal of Political Economy, University of Chicago Press, vol. 108(3), pages 531-568, June.
  9. Harberger, Arnold C, 1993. "The Search for Relevance in Economics," American Economic Review, American Economic Association, vol. 83(2), pages 1-16, May.
  10. Calvo, Guillermo A. & Drazen, Allan, 1998. "Uncertain Duration Of Reform," Macroeconomic Dynamics, Cambridge University Press, vol. 2(04), pages 443-455, December.
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Citations

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Cited by:
  1. Mariano Tommasi & Pablo T. Spiller & Ernesto Stein, 2003. "Political Institutions, Policymaking Processes, and Policy Outcomes. An Intertemporal Transactions Framework," Working Papers 59, Universidad de San Andres, Departamento de Economia, revised Jul 2003.
  2. Miguel Braun & Mariano Tommasi, 2004. "Fiscal Rules for Subnational Governments. Some organizing principles and Latin American experiences," Public Economics 0410004, EconWPA.
  3. Mariano Tommasi & Silvana Tenreyro, 2001. "Comments on Dani Rodrik's "Why Is There So Much Economic Insecurity in Latin America?"," Working Papers 28, Universidad de San Andres, Departamento de Economia, revised Mar 2001.
  4. Jeromin Zettelmeyer, 2006. "Growth and Reforms in Latin America: A Survey of Facts and Arguments," IMF Working Papers 06/210, International Monetary Fund.
  5. Martin Ardanaz & Carlos Scartascini & Mariano Tommasi, 2010. "Political Institutions, Policymaking, and Economic Policy in Latin America," Research Department Publications 4658, Inter-American Development Bank, Research Department.
  6. Roberto Cortes Conde, 2008. "Spanish America Colonial Patterns: The Rio de La Plata," Working Papers 96, Universidad de San Andres, Departamento de Economia, revised Mar 2008.
  7. José Bercoff & Osvaldo Meloni, 2009. "Federal budget allocation in an emergent democracy: evidence from Argentina," Economics of Governance, Springer, vol. 10(1), pages 65-83, January.
  8. Alejandro Bonvecchi, 2010. "The Political Economy of Fiscal Reform in Latin America: The Case of Argentina," Research Department Publications 4666, Inter-American Development Bank, Research Department.
  9. Mariano Tommasi & Pablo T. Spiller, 2004. "The Institutions of Regulation," Working Papers 67, Universidad de San Andres, Departamento de Economia, revised Mar 2004.

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