Political Fragmentation and Fiscal Outcomes
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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