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An Economic Theory of Switzerland

Author

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  • Charles B. Blankart

Abstract

Switzerland is often viewed as a federalist curiosity and a unique form of direct democracy. But this view does not provide a proper understanding of the country. A theory of Switzerland is necessary. A consideration of the initial, exogenous geographical situation of Swiss territory provides a better understanding of the country’s development. It was out of the frac-tured geography that the institutions of federalism and direct democracy as they are known today developed and established themselves. Although there was a trend to internal centralisation in the 20th century, the regional authorities have maintained their autonomy considerably better in Switzerland than in other states. An important factor is that the federal government, cantons and municipalities are each responsible for their own finances and debts. This stabilises not only the budget of regional and local authorities but also prevents interference on the part of the central government.

Suggested Citation

  • Charles B. Blankart, 2011. "An Economic Theory of Switzerland," CESifo Working Paper Series 3646, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_3646
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    File URL: http://www.cesifo-group.de/DocDL/cesifo1_wp3646.pdf
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    References listed on IDEAS

    as
    1. Spoerer Mark, 2002. "Wann begannen Fiskal- und Steuerwettbewerb?," Jahrbuch für Wirtschaftsgeschichte / Economic History Yearbook, De Gruyter, vol. 43(2), pages 35-60, December.
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    More about this item

    Keywords

    fiscal federalism;

    JEL classification:

    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General
    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • N40 - Economic History - - Government, War, Law, International Relations, and Regulation - - - General, International, or Comparative

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