The political cost of taxation: new evidence from German popularity ratings
[Besteuerung und Popularität von Politikern: Neue Ergebnisse für die Deutsche Bundesregierung 1978-2003]
Previous studies indicate that higher tax burdens reduce incumbents’ popularity and re-election odds. The present paper offers a new test of this relation for German data. Our findings indicate that taxation indeed negatively affects German federal government approval ratings, in line with previous international research. Nonetheless, the government’s popularity losses do not necessarily translate into comparable gains in the opposition’s popularity. In fact, the opposition may even lose support when there is ‘divided government’ (i.e. when it has some power over policies). Finally, we find some (albeit weak) evidence that the costs of taxation are limited to the tax burden imposed by the federal government and do not extend to taxes levied at lower levels of government.
|Date of creation:||2008|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +49 (0)30 25491-402
Fax: +49 (0)30 25491-400
Web page: http://www.wzb.eu/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Niskanen, William A, 1975. "Bureaucrats and Politicians," Journal of Law and Economics, University of Chicago Press, vol. 18(3), pages 617-43, December.
- Hibbs Jr., Douglas A., 2000.
"Bread and Peace Voting in U.S. Presidential Elections,"
Working Papers in Economics
20, University of Gothenburg, Department of Economics.
- Douglas Hibbs, 2000. "Bread and Peace Voting in U.S. Presidential Elections," Public Choice, Springer, vol. 104(1), pages 149-180, July.
- Hibbs, Douglas A, Jr, 2000. " Bread and Peace Voting in U.S. Presidential Elections," Public Choice, Springer, vol. 104(1-2), pages 149-80, July.
- Schwert, G William, 1989.
"Tests for Unit Roots: A Monte Carlo Investigation,"
Journal of Business & Economic Statistics,
American Statistical Association, vol. 7(2), pages 147-59, April.
- Chappell, Henry W, Jr, 1990. "Economic Performance, Voting, and Political Support: A Unified Approach," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 313-20, May.
- Anthony Downs, 1957. "An Economic Theory of Political Action in a Democracy," Journal of Political Economy, University of Chicago Press, vol. 65, pages 135.
- Blinder, Alan S., 1985. "'Rationality, causality, and the relation between economic conditions and the popularity of parties' by Gebhard Kirchgassner," European Economic Review, Elsevier, vol. 28(1-2), pages 269-272.
- John Elder & Peter E. Kennedy, 2001. "Testing for Unit Roots: What Should Students Be Taught?," The Journal of Economic Education, Taylor & Francis Journals, vol. 32(2), pages 137-146, January.
- Peltzman, Sam, 1992. "Voters as Fiscal Conservatives," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 327-61, May.
- Fox, Gerald & Phillips, Earl N., 2003. "Interrelationship between presidential approval, presidential votes and macroeconomic performance, 1948-2000," Journal of Macroeconomics, Elsevier, vol. 25(3), pages 411-424, September.
- Kenneth Rogoff & Anne Sibert, 1986.
"Elections and Macroeconomic Policy Cycles,"
NBER Working Papers
1838, National Bureau of Economic Research, Inc.
- Francisco José Veiga & Linda Gonçalves Veiga, 2001.
"The determinants of vote intentions in Portugal,"
NIPE Working Papers
6/2001, NIPE - Universidade do Minho.
- Ashworth, John & Geys, Benny & Heyndels, Bruno, 2006. "Determinants of tax innovation: The case of environmental taxes in Flemish municipalities," European Journal of Political Economy, Elsevier, vol. 22(1), pages 223-247, March.
- Besley, Timothy & Case, Anne, 1995.
"Incumbent Behavior: Vote-Seeking, Tax-Setting, and Yardstick Competition,"
American Economic Review,
American Economic Association, vol. 85(1), pages 25-45, March.
- Timothy Besley & Anne Case, 1992. "Incumbent Behavior: Vote Seeking, Tax Setting and Yardstick Competition," NBER Working Papers 4041, National Bureau of Economic Research, Inc.
- Nannestad, Peter & Paldam, Martin, 1994. " The VP-Function: A Survey of the Literature on Vote and Popularity Functions after 25 Years," Public Choice, Springer, vol. 79(3-4), pages 213-45, June.
- Sturm, Peter H., 1985. "'Rationality, causality, and the relation between economic conditions and the popularity of parties' by Gebhard Kirchgassner," European Economic Review, Elsevier, vol. 28(1-2), pages 273-277.
- Kirchgassner, Gebhard, 1985. "Rationality, causality, and the relation between economic conditions and the popularity of parties : An empirical investigation for the Federal Republic of Germany, 1971-1982," European Economic Review, Elsevier, vol. 28(1-2), pages 243-268.
- Geys, Benny & Vermeir, Jan, 2007.
"Taxation and presidential approval: separate effects from tax burden and tax structure turbulence
[Besteuerung und Popularität von Politikern: Gibt es unterscheidbare Wirkungen aufgrund der Steuerl," Discussion Papers, Research Unit: Market Processes and Governance SP II 2007-09, Social Science Research Center Berlin (WZB).
- Benny Geys & Jan Vermeir, 2008. "Taxation and presidential approval: separate effects from tax burden and tax structure turbulence?," Public Choice, Springer, vol. 135(3), pages 301-317, June.
- Anne Case, 1994. "Taxes and the electoral cycle: how sensitive are governors to coming elections?," Business Review, Federal Reserve Bank of Philadelphia, issue Mar, pages 17-26.
- John Mikesell, 1978. "Election periods and state tax policy cycles," Public Choice, Springer, vol. 33(3), pages 99-106, January.
- Stuart Landon & David L. Ryan, 1997. "The Political Costs of Taxes and Government Spending," Canadian Journal of Economics, Canadian Economics Association, vol. 30(1), pages 85-111, February.
- Sobel, Russell S, 1998. " The Political Costs of Tax Increases and Expenditure Reductions: Evidence from State Legislative Turnover," Public Choice, Springer, vol. 96(1-2), pages 61-79, July.
- Pissarides, Christopher A, 1980. "British Government Popularity and Economic Performance," Economic Journal, Royal Economic Society, vol. 90(3593), pages 569-81, September.
- Ashworth, John & Heyndels, Bruno, 2002. " Tax Structure Turbulence in OECD Countries," Public Choice, Springer, vol. 111(3-4), pages 347-76, June.
- Hall, Alastair R, 1994. "Testing for a Unit Root in Time Series with Pretest Data-Based Model Selection," Journal of Business & Economic Statistics, American Statistical Association, vol. 12(4), pages 461-70, October.
When requesting a correction, please mention this item's handle: RePEc:zbw:wzbmpg:spii200806. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.