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Political Ideology and Economic Growth: Evidence from the French Democracy

Listed author(s):
  • François Facchini

    ()

    (Université Paris-Sud - Faculté Jean Monnet, CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Mickaël Melki

    ()

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

We provide a test of the impact of voters' political ideology on economic growth and of the role of preferences for government size as a transmission channel. We focus on France from the beginning of its stable democratic experience in 1871. A move of voters' ideology to the right increases economic growth over total observation period. However, the growth effect of ideology is mediated by voters' preferences for government size only during the post-World War II period. For reverse causality concerns, we use the political ideology of other historical democracies as an instrument variable for France's ideology.

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Paper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number halshs-00917617.

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Date of creation: Nov 2013
Publication status: Published in Documents de Travail du Centre d'Economie de la Sorbonne 2013.77 - ISSN : 1955-611X. 2013
Handle: RePEc:hal:cesptp:halshs-00917617
Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00917617
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