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Direct Democracy Matters for Economic Performance: An Empirical Investigation

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  • Feld, Lars P
  • Savioz, Marcel R

Abstract

Since the 1960s, the discussion whether democracy is a precondition for or a result of economic growth has not yet been finished. In this paper, a comparative institutional analysis of the relative performance of direct and representative democratic decision making in the Swiss economy is undertaken using a cross section of the twenty-six Swiss states in 1989 and panel data for the states from 1982 to 1993. The empirical results and robustness tests support the hypothesis that the stronger control of the representatives by the voters due to obligatory and optimal referenda leads to better economic performance. Copyright 1997 by WWZ and Helbing & Lichtenhahn Verlag AG

Suggested Citation

  • Feld, Lars P & Savioz, Marcel R, 1997. "Direct Democracy Matters for Economic Performance: An Empirical Investigation," Kyklos, Wiley Blackwell, vol. 50(4), pages 507-538.
  • Handle: RePEc:bla:kyklos:v:50:y:1997:i:4:p:507-38
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