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Political Fragmentation and Fiscal Outcomes

  • Roberto Ricciuti

In this paper we develop the analysis of the effects on political fragmentation on fiscal policy in a number of ways. We analyze three kinds of fragmentation: size and control, institutional and over time fragmentation. In doing so we introduce a number of new variables that allow us to look at this issue in a broader way. At the same time we have tackled some methodological problems that affected previous analyses, using a panel of 19 OECD countries over 1975--1995. Overall we find relatively poor evidence in favor of size and over time fragmentation, and more evidence of institutional and control fragmentation.

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Article provided by Springer in its journal Public Choice.

Volume (Year): 118 (2004)
Issue (Month): 3_4 (03)
Pages: 365-388

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Handle: RePEc:kap:pubcho:v:118:y:2004:i:3_4:p:365-388
Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=100332

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  1. Timothy Besley & Anne Case, 1993. "Does Electoral Accountability Affect Economic Policy Choices? Evidence from Gubernatorial Term Limits," NBER Working Papers 4575, National Bureau of Economic Research, Inc.
  2. John Ashworth & Bruno Heyndels, 2001. "Political Fragmentation and the Evolution of National Tax Structures in the OECD," International Tax and Public Finance, Springer, vol. 8(4), pages 377-393, August.
  3. de Haan, Jakob & Sturm, Jan-Egbert, 1994. " Political and Institutional Determinants of Fiscal Policy in the European Community," Public Choice, Springer, vol. 80(1-2), pages 157-72, July.
  4. repec:ner:tilbur:urn:nbn:nl:ui:12-3125517 is not listed on IDEAS
  5. Padovano, Fabio & Venturi, Larissa, 2001. " Wars of Attrition in Italian Government Coalitions and Fiscal Performance: 1948-1994," Public Choice, Springer, vol. 109(1-2), pages 15-54, October.
  6. Perotti, Roberto & Kontopoulos, Yianos, 2002. "Fragmented fiscal policy," Journal of Public Economics, Elsevier, vol. 86(2), pages 191-222, November.
  7. Volkerink, Bjorn & De Haan, Jakob, 2001. " Fragmented Government Effects on Fiscal Policy: New Evidence," Public Choice, Springer, vol. 109(3-4), pages 221-42, December.
  8. Mark Hallerberg & Jurgen von Hagen, 1997. "Electoral Institutions, Cabinet Negotiations, and Budget Deficits in the European Union," NBER Working Papers 6341, National Bureau of Economic Research, Inc.
  9. Rogoff, Kenneth & Sibert, Anne, 1988. "Elections and Macroeconomic Policy Cycles," Review of Economic Studies, Wiley Blackwell, vol. 55(1), pages 1-16, January.
  10. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Wiley Blackwell, vol. 58(2), pages 277-97, April.
  11. Barro, Robert J., 1979. "On the Determination of the Public Debt," Scholarly Articles 3451400, Harvard University Department of Economics.
  12. de Haan, Jakob & Sturm, Jan-Egbert & Beekhuis, Geert, 1999. " The Weak Government Thesis: Some New Evidence," Public Choice, Springer, vol. 101(3-4), pages 163-76, December.
  13. Edin, Per-Anders & Ohlsson, Henry, 1991. "Political determinants of budget deficits: Coalition effects versus minority effects," European Economic Review, Elsevier, vol. 35(8), pages 1597-1603, December.
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