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Economic Freedom and Government Ideology across the German States

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  • Potrafke, Niklas

Abstract

Potrafke N. Economic freedom and government ideology across the German states, Regional Studies. This paper examines whether government ideology influenced economic freedom across the German states. The results show that in former West Germany rightwing governments promoted economic freedom, whereas leftwing governments confined it. In the former East Germany, however, rightwing governments were not associated with propagating economic freedom. This finding appears to conflict with the common notion of policy convergence at the federal level. In fact, the observed variation in political preferences across states may indicate that politicians gratify the local electorate and, in return, offer moderate policies at the federal level.

Suggested Citation

  • Potrafke, Niklas, 2013. "Economic Freedom and Government Ideology across the German States," Munich Reprints in Economics 19269, University of Munich, Department of Economics.
  • Handle: RePEc:lmu:muenar:19269
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    Cited by:

    1. Niklas Potrafke, 2013. "Evidence on the political principal-agent problem from voting on public finance for concert halls," Constitutional Political Economy, Springer, vol. 24(3), pages 215-238, September.
    2. repec:eee:poleco:v:48:y:2017:i:c:p:180-197 is not listed on IDEAS
    3. Björn Kauder, 2016. "Incorporation of municipalities and population growth: A propensity score matching approach," Papers in Regional Science, Wiley Blackwell, vol. 95(3), pages 539-554, August.
    4. Dominik Hecker & Dano Meiske & Niklas Potrafke & Marina Riem & Christoph Schinke, 2016. "Schuldenbremsen in den deutschen Bundesländern: Worte und Taten der Landesregierungen," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 69(02), pages 14-22, January.
    5. Manuela Krause & Niklas Potrafke, 2017. "The Real Estate Transfer Tax and Government Ideology: Evidence from the German States," CESifo Working Paper Series 6491, CESifo Group Munich.
    6. Arye L. Hillman & Niklas Potrafke, 2016. "Economic Freedom and Religion: An Empirical Investigation," CESifo Working Paper Series 6017, CESifo Group Munich.
    7. Cooray, Arusha & Tamazian, Artur & Vadlamannati, Krishna Chaitanya, 2014. "What drives FDI policy liberalization? An empirical investigation," Regional Science and Urban Economics, Elsevier, vol. 49(C), pages 179-189.
    8. Björn Kauder, 2015. "Spatial Administrative Structure And Intra-Metropolitan Tax Competition," Journal of Regional Science, Wiley Blackwell, vol. 55(4), pages 626-643, September.
    9. Bjørnskov, Christian, 2016. "Economic freedom and economic crises," European Journal of Political Economy, Elsevier, vol. 45(S), pages 11-23.
    10. Marina Riem, 2016. "Does political uncertainty influence firm owners‘ business perceptions?," ifo Working Paper Series 226, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    11. Mandel Philipp & Süssmuth Bernd, 2015. "Public Education, Accountability, and Yardstick Competition in a Federal System," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 15(4), pages 1679-1703, October.
    12. Björn Kauder & Niklas Potrafke, 2013. "Government Ideology and Tuition Fee Policy: Evidence from the German States," CESifo Economic Studies, CESifo, vol. 59(4), pages 628-649, December.
    13. Reischmann Markus, 2014. "Staatsverschuldung in Extrahaushalten: Historischer Überblick und Implikationen für die Schuldenbremse in Deutschland," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 15(2), pages 171-181, June.
    14. Karmann, Alexander & Roesel, Felix, 2016. "Hospital policy and productivity: Evidence from German states," CEPIE Working Papers 07/16, Technische Universität Dresden, Center of Public and International Economics (CEPIE).
    15. Baskaran, Thushyanthan, 2012. "Ideology and fiscal policy: quasi-experimental evidence from the German States," Center for European, Governance and Economic Development Research Discussion Papers 144, University of Goettingen, Department of Economics.
    16. Niklas Potrafke & Marina Riem & Christoph Schinke, 2016. "Debt Brakes in the German States: Governments’ Rhetoric and Actions," German Economic Review, Verein für Socialpolitik, vol. 17(2), pages 253-275, May.
    17. Foremny, Dirk & Riedel, Nadine, 2014. "Business taxes and the electoral cycle," Journal of Public Economics, Elsevier, vol. 115(C), pages 48-61.
    18. repec:got:cegedp:144 is not listed on IDEAS
    19. repec:bla:coecpo:v:35:y:2017:i:1:p:76-92 is not listed on IDEAS
    20. Mira Fischer & Björn Kauder & Niklas Potrafke & Heinrich W. Ursprung, 2016. "Support for free-market policies and reforms: Does the field of study influence students’ political attitudes?," ifo Working Paper Series 218, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    21. repec:ces:ifosdt:v:70:y:2017:i:20:p:28-37 is not listed on IDEAS
    22. Björn Kauder & Niklas Potrafke, 2013. "Regierungsideologie und Studiengebühren in den deutschen Bundesländern," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 66(10), pages 19-24, May.

    More about this item

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R50 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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