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Political Institutions, Policymaking Processes, and Policy Outcomes: The Case of Uruguay

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Listed:
  • Pereyra, Andrés
  • Tansini, Ruben
  • Garcé, Adolfo
  • Chasquetti, Daniel
  • Buquet, Daniel
  • Moraes, Juan Andrés

Abstract

This paper analyses the dynamics of policymaking among the various political institutions in Uruguay. The authors find that first, there are relatively stable policies, such as those allowing for the commercial and financial openness of the country. Then there are inflexible and low-quality policies, such as those related to social policies, some areas of state reform (civil servants' wages and hiring mechanisms), the bankruptcy regime, etc. Finally, there are volatile outcomes resulting from economic shocks, such as those related to discretionary public spending. In certain cases, the main outer feature of Uruguayan policies is rigidity. The source of rigidity appears to be a mixture of institutional factors and political conflict, in which it is very costly to move from the status quo due to the credible threat of policy reversal. Political institutions in Uruguay are conducive to achieving political compromise in the short run, but cannot effectively cooperate in establishing stable and flexible policies in the long run.

Suggested Citation

  • Pereyra, Andrés & Tansini, Ruben & Garcé, Adolfo & Chasquetti, Daniel & Buquet, Daniel & Moraes, Juan Andrés, 2006. "Political Institutions, Policymaking Processes, and Policy Outcomes: The Case of Uruguay," IDB Publications (Working Papers) 3368, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:3368
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    References listed on IDEAS

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    3. Borchardt, Michale & Rial, Isabel & Sarmiento, Adolfo, 1998. "Sostenibilidad de la política fiscal en Uruguay," IDB Publications (Working Papers) 6107, Inter-American Development Bank.
    4. Pablo T. Spiller, 2003. "The Institutional Foundations of Public Policy: A Transactions Approach with Application to Argentina," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 19(2), pages 281-306, October.
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    6. Mariano Tommasi & Pablo T. Spiller & Ernesto Stein, 2003. "Political Institutions, Policymaking Processes, and Policy Outcomes. An Intertemporal Transactions Framework," Working Papers 59, Universidad de San Andres, Departamento de Economia, revised Jul 2003.
    7. Shugart,Matthew Soberg & Carey,John M., 1992. "Presidents and Assemblies," Cambridge Books, Cambridge University Press, number 9780521419628.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    policymaking; political institutions; Uruguay; Latin American Research Network; public administration;
    All these keywords.

    JEL classification:

    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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