It's a matter of confidence: Institutions, government stability and economic outcomes
The effect of constitutional structures (such as the effect of a presidential vs. a parliamentary system) over policy outcomes has been widely studied in the economic literature. In this paper, we investigate whether stable parliamentary systems and unstable parliamentary systems behave differently in terms of the policy outcomes they implement. We show that accounting for the stability of parliamentary systems generates results that are more robust compared to the previous literature. More precisely, we find that stable parliamentary systems are significantly different both from presidential and from unstable parliamentary ones. Moreover, we show that this result is robust to changes in the set of countries, and to changes in the definition of stability. Finally, we discuss how these results are consistent with the presence of a selection effect in parliamentary systems.
|Date of creation:||Sep 2015|
|Date of revision:||Sep 2015|
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- Hayo, Bernd & Voigt, Stefan, 2013.
"Endogenous constitutions: Politics and politicians matter, economic outcomes don’t,"
Journal of Economic Behavior & Organization,
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- Daniel Diermeier & Razvan Vlaicu, 2011. "Executive Control and Legislative Success," Review of Economic Studies, Oxford University Press, vol. 78(3), pages 846-871.
- Lorenz Blume & Jens Müller & Stefan Voigt & Carsten Wolf, 2009. "The economic effects of constitutions: replicating—and extending—Persson and Tabellini," Public Choice, Springer, vol. 139(1), pages 197-225, April.
- Lorenz Blume & Jens Müller & Stefan Voigt & Carsten Wolf, 2007. "The Economic Effects of Constitutions: Replicating – and Extending – Persson and Tabellini," CESifo Working Paper Series 2017, CESifo Group Munich.
- Stefan Voigt, 2011. "Positive constitutional economics II—a survey of recent developments," Public Choice, Springer, vol. 146(1), pages 205-256, January.
- Stefan Voigt, 2009. "Positive Constitutional Economics II—A Survey of Recent Developments," MAGKS Papers on Economics 200936, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
- Voigt, Stefan, 2011. "Empirical constitutional economics: Onward and upward?," Journal of Economic Behavior & Organization, Elsevier, vol. 80(2), pages 319-330.
- Daron Acemoglu, 2005. "Constitutions, Politics and Economics: A Review Essay on Persson and Tabellini's "The Economic Effect of Constitutions"," NBER Working Papers 11235, National Bureau of Economic Research, Inc.
- Brennan, Geoffrey & Kliemt, Hartmut, 1994. "Finite Lives and Social Institutions," Kyklos, Wiley Blackwell, vol. 47(4), pages 551-571.
- Michela Cella & Giovanna Iannantuoni & Elena Manzoni, 2014. "Constitutional Rules and Efficient Policies," Working Papers 270, University of Milano-Bicocca, Department of Economics, revised Mar 2014. Full references (including those not matched with items on IDEAS)
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