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Political Polarization and the Size of Government

  • Lindqvist, Erik

    ()

    (Research Institute of Industrial Economics)

  • Östling, Robert

    ()

    (Institute for International Economic Studies, Stockholm University)

We study the effect of political polarization on public spending using the dispersion of self-reported political preferences as our measure of polarization. Political polarization is strongly associated with smaller government in democratic countries, but there is no relationship between polarization and the size of government in undemocratic countries. The results are robust to a large set of control variables, including GDP per capita and income inequality.

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Paper provided by Stockholm School of Economics in its series SSE/EFI Working Paper Series in Economics and Finance with number 628.

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Length: 47 pages
Date of creation: 19 May 2006
Date of revision: 02 Jul 2007
Publication status: Published in American Political Science Review, 2010, pages 543-565.
Handle: RePEc:hhs:hastef:0628
Contact details of provider: Postal:
The Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden

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Web page: http://www.hhs.se/
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