Does government ideology influence budget composition? Empirical evidence from OECD countries
This paper examines whether government ideology has influenced the allocation of public expenditures in OECD countries. I analyze two datasets that report different expenditure categories and cover the time periods 1970-1997 and 1990-2006, respectively. The results suggest that government ideology has had a rather weak influence on the composition of governments’ budgets. Leftist governments, however, increased spending on \"Public Services\" in the period 1970-1997 and on \"Education\" in the period 1990-2006. These findings imply, first, that government ideology hardly influenced budgetary affairs in the last decades, and thus, if ideology plays a role at all, it influences non-budgetary affairs. Second, education has become an important expenditure category for leftist parties to signal their political visions to voters belonging to all societal groups.
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|Date of creation:||2011|
|Publication status:||Published in Economics of Governance 2 12(2011): pp. 101-134|
|Contact details of provider:|| Postal: Ludwigstr. 28, 80539 Munich, Germany|
Web page: http://www.vwl.uni-muenchen.de
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- Philippe, DE DONDER & Jean, HINDRIKS, 2006. "Equilibrium Social Insurance with Policy-Motivated Parties," Discussion Papers (ECON - Département des Sciences Economiques) 2006018, Université catholique de Louvain, Département des Sciences Economiques.
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"Political ideology and economic freedom across Canadian provinces,"
Working Papers CEB
09-054.RS, ULB -- Universite Libre de Bruxelles.
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