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Disciplining Ballots? – (Un-intended) Effects of Voter Engagement on the Fiscal Sustainability of Swiss Cantons

Author

Listed:
  • Yannick Bury
  • Lars P. Feld
  • Ekkehard A. Köhler

Abstract

We test whether the proactive use of instruments of direct democracy by voters can help to explain fiscal sustainability of 25 Swiss cantons. Using data of all cantonal popular votes since 1977, our results show that the fiscal reaction of cantonal governments to an increase in the debt to GDP ratio of a canton is stronger, the more cantonal voters actively made use of their direct democratic rights in the previous year.

Suggested Citation

  • Yannick Bury & Lars P. Feld & Ekkehard A. Köhler, 2023. "Disciplining Ballots? – (Un-intended) Effects of Voter Engagement on the Fiscal Sustainability of Swiss Cantons," CESifo Working Paper Series 10759, CESifo.
    • Handle: RePEc:ces:ceswps:_10759
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    More about this item

    Keywords

    direct democracy; political process; fiscal policy;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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