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Fiscal performance of minority governments: New empirical evidence for OECD countries

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  • Potrafke, Niklas

Abstract

I use new data on central and general governments for 23 OECD countries over the period 1960-2015 (unbalanced panel) to examine fiscal performance under minority governments. The results do not suggest that minority governments had higher fiscal deficits and public expenditure than majority governments-corroborating many previous studies. An innovation of my study is to examine fiscal policies of minority governments that enjoy organized support of opposition parties. The results do not show that minority governments that enjoy organized support of opposition parties increased public expenditure to a larger extent than majority governments. If anything, fiscal deficits were somewhat higher under single-party minority governments with organized support of opposition parties than under majority governments especially. Minority and majority governments had quite similar fiscal performance in OECD countries.

Suggested Citation

  • Potrafke, Niklas, 2019. "Fiscal performance of minority governments: New empirical evidence for OECD countries," Munich Reprints in Economics 78253, University of Munich, Department of Economics.
  • Handle: RePEc:lmu:muenar:78253
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    Cited by:

    1. Lea Fricke & Niklas Potrafke, 2019. "Fiskalpolitiken von Minderheitsregierungen: Empirische Evidenz für Industrieländer," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 72(16), pages 42-46, August.
    2. Pedro Antonio Martín Cervantes & Nuria Rueda López & Salvador Cruz Rambaud, 2020. "The Effect of Globalization on Economic Development Indicators: An Inter-Regional Approach," Sustainability, MDPI, vol. 12(5), pages 1-18, March.
    3. Pedro Antonio Martín Cervantes & Nuria Rueda López & Salvador Cruz Rambaud, 2020. "The Relative Importance of Globalization and Public Expenditure on Life Expectancy in Europe: An Approach Based on MARS Methodology," IJERPH, MDPI, vol. 17(22), pages 1-20, November.
    4. Stefanie Gäbler & Björn Kauder & Manuela Krause & Luisa Lorenz & Niklas Potrafke, 2018. "Auf der Suche nach einer Regierung – zu den Ergebnissen der Sondierungsgespräche zwischen CDU/CSU und SPD," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 71(05), pages 30-34, March.

    More about this item

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H00 - Public Economics - - General - - - General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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