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Weathering the Global Financial Crisis - Is Direct Democracy of any Help?

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  • Mario Jametti

    (University of Lugano)

Abstract

The global financial crisis and the European debt crisis have loomed large over the globe, with severe consequences on government finances in many countries. Switzerland has fared relatively well throughout this crisis. In this paper, surveying a selection of empirical research on Switzerland, we argue that direct democracy might be one (but not the only) reason why Switzerland has weathered the storm exceptionally well.

Suggested Citation

  • Mario Jametti, 2014. "Weathering the Global Financial Crisis - Is Direct Democracy of any Help?," IdEP Economic Papers 1405, USI Università della Svizzera italiana.
    • Handle: RePEc:lug:wpidep:1405
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    References listed on IDEAS

    as
    1. Sergio Galletta & Mario Jametti, 2012. "How to Tame two Leviathans? Revisiting the Effect of Direct Democracy on Local Public Expenditure," CESifo Working Paper Series 3982, CESifo.
    2. Brülhart, Marius & Jametti, Mario, 2019. "Does tax competition tame the Leviathan?," Journal of Public Economics, Elsevier, vol. 177(C), pages 1-1.
    3. Zareh Asatryan & Thushyanthan Baskaran & Theocharis Grigoriadis & Friedrich Heinemann, 2017. "Direct Democracy and Local Public Finances under Cooperative Federalism," Scandinavian Journal of Economics, Wiley Blackwell, vol. 119(3), pages 801-820, July.
    4. Pommerehne, Werner W., 1978. "Institutional approaches to public expenditure : Empirical evidence from Swiss municipalities," Journal of Public Economics, Elsevier, vol. 9(2), pages 255-280, April.
    5. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64(5), pages 416-416.
    6. Patricia Funk & Christina Gathmann, 2011. "Does Direct Democracy Reduce the Size of Government? New Evidence from Historical Data, 1890–2000," Economic Journal, Royal Economic Society, vol. 121(557), pages 1252-1280, December.
    7. Feld, Lars P. & Kirchgassner, Gebhard, 2000. "Direct democracy, political culture, and the outcome of economic policy: a report on the Swiss experience," European Journal of Political Economy, Elsevier, vol. 16(2), pages 287-306, June.
    8. Brulhart, Marius & Jametti, Mario, 2006. "Vertical versus horizontal tax externalities: An empirical test," Journal of Public Economics, Elsevier, vol. 90(10-11), pages 2027-2062, November.
    9. Feld, Lars P. & Matsusaka, John G., 2003. "Budget referendums and government spending: evidence from Swiss cantons," Journal of Public Economics, Elsevier, vol. 87(12), pages 2703-2724, December.
    10. Martin Baur & Pierre-Alain Bruchez & Barbara Schlaffer, 2013. "Institutions for Crisis Prevention: the Case of Switzerland," Global Policy, London School of Economics and Political Science, vol. 4, pages 10-21, July.
    11. Anke Kessler, 2005. "Representative versus direct democracy: The role of informational asymmetries," Public Choice, Springer, vol. 122(1), pages 9-38, January.
    12. Feld, Lars P. & Schaltegger, Christoph A. & Schnellenbach, Jan, 2008. "On government centralization and fiscal referendums," European Economic Review, Elsevier, vol. 52(4), pages 611-645, May.
    13. John G. Matsusaka, 1992. "Economics of Direct Legislation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(2), pages 541-571.
    14. repec:bla:kyklos:v:50:y:1997:i:4:p:507-38 is not listed on IDEAS
    15. Thomas Romer & Howard Rosenthal, 1979. "Bureaucrats Versus Voters: On the Political Economy of Resource Allocation by Direct Democracy," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 93(4), pages 563-587.
    16. Matsusaka, John G, 1995. "Fiscal Effects of the Voter Initiative: Evidence from the Last 30 Years," Journal of Political Economy, University of Chicago Press, vol. 103(3), pages 587-623, June.
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    More about this item

    Keywords

    Fiscal Direct democracy; Financial Crisis;

    JEL classification:

    • R50 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - General
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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