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Short versus Long Coalitions: Electoral Accountability and the Size of the Public Sector

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  • Kathleen Bawn
  • Frances Rosenbluth

Abstract

This article examines the policy consequences of the number of parties in government. We argue that parties externalize costs not borne by their support groups. Larger parties thus internalize more costs than small parties because they represent more groups. This argument implies that the public sector should be larger the more parties there are in the government coalition. We test this prediction using yearly time‐series cross‐sectional data from 1970 to 1998 in 17 European countries. We find that increasing the number of parties in government increases the fraction of GDP accounted for by government spending by close to half a percentage point, or more than one billion current dollars in the typical year. We find little support for the alternative claim that the number of legislative parties affects the size of the public sector, except via the number of parties in government.

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  • Kathleen Bawn & Frances Rosenbluth, 2006. "Short versus Long Coalitions: Electoral Accountability and the Size of the Public Sector," American Journal of Political Science, John Wiley & Sons, vol. 50(2), pages 251-265, April.
    • Handle: RePEc:wly:amposc:v:50:y:2006:i:2:p:251-265
    DOI: 10.1111/j.1540-5907.2006.00182.x
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    1. Guido Tabellini, "undated". "Constitutional determinants of government spending," Working Papers 162, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    2. Persson, Torsten & Roland, Gerard & Tabellini, Guido, 2007. "Electoral Rules and Government Spending in Parliamentary Democracies," Quarterly Journal of Political Science, now publishers, vol. 2(2), pages 155-188, May.
    3. Pettersson-Lidbom, Per, 2012. "Does the size of the legislature affect the size of government? Evidence from two natural experiments," Journal of Public Economics, Elsevier, vol. 96(3), pages 269-278.
    4. Torsten Persson & Guido Tabellini, "undated". "Political Institutions and Policy Outcomes: What are the Stylized Facts?," Working Papers 189, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    5. Warwick, Paul V. & Druckman, James N., 2001. "Portfolio Salience and the Proportionality of Payoffs in Coalition Governments," British Journal of Political Science, Cambridge University Press, vol. 31(4), pages 627-649, October.
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