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Growth and Extremism

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  • Markus Brueckner
  • Hans Peter Gruener

Abstract

We argue that the growth rate, but not the level of aggregate income, affects the support for political extremism. In our model extreme parties offer benefits to a subset of the population; and there exists uncertainty over whether the same subset of individuals will receive these benefits in the future. Based on a panel of 16 European countries, our empirical analysis shows that lower growth rates are associated with a significant increase in right-wing extremism. We do not find a systematic effect on left-wing extremism. Uncertainty over what group will have incomes expropriated in the future may explain these results.

Suggested Citation

  • Markus Brueckner & Hans Peter Gruener, 2016. "Growth and Extremism," ANU Working Papers in Economics and Econometrics 2016-639, Australian National University, College of Business and Economics, School of Economics.
  • Handle: RePEc:acb:cbeeco:2016-639
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    File URL: https://www.cbe.anu.edu.au/researchpapers/econ/wp639.pdf
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    References listed on IDEAS

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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Austerity and racism
      by chris in Stumbling and Mumbling on 2016-06-28 17:46:40
    2. My socialism
      by chris in Stumbling and Mumbling on 2016-08-10 17:52:20
    3. The centrist crisis
      by chris in Stumbling and Mumbling on 2016-09-22 17:36:59
    4. Not understanding the right
      by chris in Stumbling and Mumbling on 2016-11-27 19:07:30
    5. Is the centre-left dead?
      by chris in Stumbling and Mumbling on 2017-01-31 20:00:12
    6. Let's not debate immigration
      by chris in Stumbling and Mumbling on 2017-02-05 19:50:09
    7. Unsayable truths
      by chris in Stumbling and Mumbling on 2017-05-30 18:05:48
    8. Symptoms of stagnation
      by chris in Stumbling and Mumbling on 2021-06-27 12:15:35

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    More about this item

    Keywords

    Economic Growth; Political Extremism;

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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