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The impact of within-party and between-party ideological dispersion on fiscal outcomes: evidence from Swiss cantonal parliaments

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  • Tjasa Bjedov

    (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet [Saint-Étienne] - Université de Lyon - CNRS - Centre National de la Recherche Scientifique, Université de Fribourg, Faculté des sciences économiques et sociales - Albert-Ludwigs-Universität Freiburg)

  • Simon Lapointe

    (Université de Fribourg, Faculté des sciences économiques et sociales - Albert-Ludwigs-Universität Freiburg)

  • Thierry Madiès

    (Université de Fribourg, Faculté des sciences économiques et sociales - Albert-Ludwigs-Universität Freiburg)

Abstract

The impact of the fragmentation of executive and legislative bodies on the level and composition of government expenditure is a political feature that attracted considerable attention from economists. However, previous authors have abstracted from two important concepts : ideology and intra-party politics. In this paper, we explicitly account for these two phenomenons, and make two main contributions. First, we show that both intra-party and interparty ideological dispersion matters in the level of public spending. Therefore, it is incorrect to consider parties as monolithic entities. We also show that ideological dispersion matters especially for current expenditures, and not so much for investment expenditures. To do so, we construct a panel database (2003 to 2011) including data from a survey that quantifies the policy preferences of individual party members that were candidates to federal elections in Switzerland.

Suggested Citation

  • Tjasa Bjedov & Simon Lapointe & Thierry Madiès, 2014. "The impact of within-party and between-party ideological dispersion on fiscal outcomes: evidence from Swiss cantonal parliaments," Post-Print halshs-01098755, HAL.
  • Handle: RePEc:hal:journl:halshs-01098755
    DOI: 10.1007/s11127-013-0149-8
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-01098755
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Public Spending; Political Parties; Ideology; Political Fragmentation;

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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