IDEAS home Printed from https://ideas.repec.org/p/gra/wpaper/09-13.html
   My bibliography  Save this paper

Testing for Political Effects on Total Factor Productivity

Author

Listed:
  • Betty Agnani

    () (Universidad de Granada)

  • Henry Aray

    () (Universidad de Granada)

Abstract

We test the effects of different combinations of parties simultaneously holding office in the central and regional governments on regional economic growth. We hypothesize that if such effects indeed exist, they should accrue through total factor productivity (T F P ). Using panel data for the Spanish regions over the 1988-2004 period, we find no effects of any combinations of parties on T F P growth rate. Our results are robust to different methods of estimation and different measures of T F P and could have a twofold interpretation. On the one hand, they could shed light on the consolidation of the governmental institutions of the Spanish federal state model. On the other hand, they could suggest, as shown by previous literature, that political effects on real economy could mainly accrue through aggregate demand policies.

Suggested Citation

  • Betty Agnani & Henry Aray, "undated". "Testing for Political Effects on Total Factor Productivity," ThE Papers 09/13, Department of Economic Theory and Economic History of the University of Granada..
  • Handle: RePEc:gra:wpaper:09/13
    as

    Download full text from publisher

    File URL: http://www.ugr.es/~teoriahe/RePEc/gra/wpaper/thepapers09_13.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Rivera, Berta & Currais, Luis, 2004. "Public Health Capital and Productivity in the Spanish Regions: A Dynamic Panel Data Model," World Development, Elsevier, vol. 32(5), pages 871-885, May.
    2. Ciccone, Antonio, 2002. "Agglomeration effects in Europe," European Economic Review, Elsevier, vol. 46(2), pages 213-227, February.
    3. repec:cup:apsrev:v:71:y:1977:i:04:p:1467-1487_26 is not listed on IDEAS
    4. Aschauer, David Alan, 1989. "Is public expenditure productive?," Journal of Monetary Economics, Elsevier, vol. 23(2), pages 177-200, March.
    5. Barro, Robert J, 1999. "Notes on Growth Accounting," Journal of Economic Growth, Springer, vol. 4(2), pages 119-137, June.
    6. Julio Martínez-Galarraga & Elisenda Paluzie & Jordi Pons & Daniel A. Tirado-Fabregat, 2008. "Agglomeration and labour productivity in Spain over the long term," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 2(3), pages 195-212, October.
    7. Dixit, Avinash & Londregan, John, 1995. "Redistributive Politics and Economic Efficiency," American Political Science Review, Cambridge University Press, vol. 89(04), pages 856-866, December.
    8. Alberto Alesina & Nouriel Roubini, 1992. "Political Cycles in OECD Economies," Review of Economic Studies, Oxford University Press, vol. 59(4), pages 663-688.
    9. Ciccone, Antonio & Hall, Robert E, 1996. "Productivity and the Density of Economic Activity," American Economic Review, American Economic Association, vol. 86(1), pages 54-70, March.
    10. Matilde Mas & Joaquin Maudos & Francisco Perez & Ezequiel Uriel, 1996. "Infrastructures and Productivity in the Spanish Regions," Regional Studies, Taylor & Francis Journals, vol. 30(7), pages 641-649.
    11. Hibbs, Douglas Jr., 1992. "Partisan theory after fifteen years," European Journal of Political Economy, Elsevier, vol. 8(3), pages 361-373, October.
    12. Maria del Mar Salinas Jiménez, 2003. "Efficiency and TFP Growth in the Spanish Regions: The Role of Human and Public Capital," Growth and Change, Wiley Blackwell, vol. 34(2), pages 157-174.
    13. Matthew Cole & Eric Neumayer, 2006. "The impact of poor health on total factor productivity," Journal of Development Studies, Taylor & Francis Journals, vol. 42(6), pages 918-938.
    14. Per Pettersson-Lidbom, 2008. "Do Parties Matter for Economic Outcomes? A Regression-Discontinuity Approach," Journal of the European Economic Association, MIT Press, vol. 6(5), pages 1037-1056, September.
    15. Avinash Dixit, 2009. "Governance Institutions and Economic Activity," American Economic Review, American Economic Association, vol. 99(1), pages 5-24, March.
    16. Antonio Alvarez, 2007. "Decomposing regional productivity growth using an aggregate production frontier," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 41(2), pages 431-441, June.
    17. Lourens Broersma & Jouke van Dijk, 2008. "The effect of congestion and agglomeration on multifactor productivity growth in Dutch regions," Journal of Economic Geography, Oxford University Press, vol. 8(2), pages 181-209, March.
    18. Roubini, Nouriel & Alesina, Alberto, 1992. "Political Cycles in OECD Economies," Scholarly Articles 4553025, Harvard University Department of Economics.
    19. Alesina, Alberto, 1987. "Macroeconomic Policy in a Two-party System as a Repeated Game," Scholarly Articles 4552531, Harvard University Department of Economics.
    20. C. Alicia Avilés Zugasti & Rosario Gómez García & José Sánchez Maldonado, 2001. "The effects of public infrastructure on the cost structure of Spanish industries," Spanish Economic Review, Springer;Spanish Economic Association, vol. 3(2), pages 131-150.
    Full references (including those not matched with items on IDEAS)

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gra:wpaper:09/13. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Angel Solano Garcia.). General contact details of provider: http://edirc.repec.org/data/dtugres.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.