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Do voters dislike liberalizing reforms? New evidence using data on satisfaction with democracy

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  • Berggren, Niclas
  • Bjørnskov, Christian

Abstract

Since the early 1980s a wave of liberalizing reforms has swept over the world. Using panel data from 30 European countries in the period 1993–2015, we test the hypothesis that such reforms have led to voter dissatisfaction with democracy, since, it is argued, they have been undertaken in a non-transparent way, often during crises, and they have entailed detrimental consequences. The reform measures are constructed as distinct changes in four policy/institutional areas: government size, the rule of law, market openness, and regulation. Our results indicate that while reforms of government size are not robustly related to satisfaction with democracy, reforms of the other three kinds are – and in a way that runs counter to anti-liberalization claims. Reforms that reduce economic freedom are generally related to satisfaction with democracy in a negative way, while reforms that increase economic freedom are associated positively with satisfaction with democracy.

Suggested Citation

  • Berggren, Niclas & Bjørnskov, Christian, 2019. "Do voters dislike liberalizing reforms? New evidence using data on satisfaction with democracy," Journal of Institutional Economics, Cambridge University Press, vol. 15(4), pages 631-648, August.
    • Handle: RePEc:cup:jinsec:v:15:y:2019:i:04:p:631-648_00
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    Cited by:

    1. Berggren, Niclas & Nilsson, Therese, 2021. "Economic freedom and antisemitism," Journal of Institutional Economics, Cambridge University Press, vol. 17(2), pages 289-304, April.
    2. Méon, Pierre-Guillaume & Sekkat, Khalid, 2022. "A time to throw stones, a time to reap: how long does it take for democratic transitions to improve institutional outcomes?," Journal of Institutional Economics, Cambridge University Press, vol. 18(3), pages 429-443, June.
    3. Bennett, Daniel L. & Long, Jason T., 2019. "Is it the economic policy, stupid? Economic policy, political parties & the gubernatorial incumbent advantage," European Journal of Political Economy, Elsevier, vol. 58(C), pages 118-137.
    4. Ryan H. Murphy, 2019. "The long‐run effect of government ideology on economic freedom," Economic Affairs, Wiley Blackwell, vol. 39(1), pages 101-114, February.

    More about this item

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • P11 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Planning, Coordination, and Reform
    • Z18 - Other Special Topics - - Cultural Economics - - - Public Policy

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