Which democracies prosper? Electoral rules, form of government and economic growth

Electoral rules and form of government have important economic effects, for example on taxation and public spending. However, there are no robust results in the literature when it comes to their effect on economic growth. This paper investigates whether electoral rules and form of government affects economic growth by applying panel data techniques on a very extensive dataset. There is no robust effect of presidentialism or parliamentarism on growth. However, there is very robust evidence for a positive, and quite substantial, effect of Proportional Representation (PR) electoral rules on economic growth. This is partly due to PR systems’ propensity to generate broad-interest policies, like universal education spending, property rights protection and free-trade, rather than special interest economic policies. Also semi-proportional systems seem to enhance growth relative to plural-majoritarian systems.     

Veterans interests and the transition to government growth: 1870–1915

Civil War veterans were the first interest group to use their political power to obtain substantial monetary transfers from the U.S. Treasury. Veterans supported the Republican party, and in exchange Republicans provided increasingly generous veterans benefits, placing a strain on the Treasury that led toward a demand for increased taxes. Veterans also established a precedent that other groups could follow to petition the goverment for economic benefits, shaping the transformation of American government in the Progressive era which led to the substantial growth of the federal government in the 20th century.     

Do government formation deadlocks really damage economic growth? Evidence from history's longest period of government formation impasse

Several countries have experienced lengthy periods of government formation deadlock in recent years, as they have sought to form a new government. This study examines whether government formation deadlocks damage a country's economy. To do so, we analyze the case of Belgium, which took a record 541 days to create a post‐election government, following the June 2010 federal elections. Employing the synthetic control method, our results show that the Belgium economy did not suffer an economic toll; on the contrary, gross domestic product per capita growth was higher than would have otherwise been expected. As such, our evidence contradicts frequent claims that long periods of government formation deadlock negatively affect an economy.     

Interest-group analysis in economic history and the history of economic thought

This article reviews Bob Tollison’s conjoined contributions to the scholarly literature in the closely related fields of economic history and history of economic thought, underscoring his integration of public choice and interest-group analysis into the historian’s purview. It identifies the overarching themes of his research and summarizes the major findings of his key publications.     

János Kornai,the Austrians,and the political and economic analysis of socialism

Public Choice - What is the relationship between central planning, pervasive shortages, and soft budget constraints under socialism? In this paper, we address this question by exploring the...     

Political regime change, economic liberalization and?growth accelerations

We examine whether the type of political regime, regime changes, and economic liberalization are related to economic growth accelerations. Our results show that growth accelerations are preceded by economic liberalizations. We also find that growth accelerations are less likely to happen the longer a political regime??be it a democracy or an autocracy??has been in place, while (a move toward) more democracy according to the Polity IV dataset reduces the likelihood of growth accelerations.     

Political-economic context and partisan strategies in the German federal elections, 1990–2002

This contribution develops a theory of the impact of differentiation on integration and unity among EU member states and discusses empirical evidence from four policy areas. According to the theory, the centripetal effects of closer co‐operation among willing EU members on initially unwilling non‐participants are strongly influenced by the character of the respective policy area in terms of public goods theory. The eventual participation of initially reluctant member states, which leads to the re‐establishment of long‐run unity despite short run differentiation, is most likely in policy areas involving excludable network effects, and most unlikely in areas dealing with common pool resource problems (the four remaining types of goods ranking in between these two extremes). The theoretical conclusions are supported by empirical evidence from four EU‐related policies: the successful three show strong characteristics of excludable network goods (EMU, Schengen and the Dublin Convention), while the one which has proved extraordinarily difficult so far involves a common pool resource problem (tax harmonisation).     

The ‘treason of the intellectuals’: the shadowy presence of the Congress for Cultural Freedom in Greece, 1950–1963

This paper seeks to reconstruct the Greek adventures of the Congress for Cultural Freedom from the early 1950s to the mid-1960s. It argues that the presence of the CCF in Greece was weak as can be inferred by the inability to form an official committee, but also by the absence of an original intellectual production in Greek. Its weakness can be attributed to the inability to combine commitment to the anti-communist cause, in the liberal terms of the CCF, with intellectual or artistic work of some merit for CCF representatives in Greece. These contradictions are personified by Manolis Korakas, a socialist and passionate anti-communist, who remained in the shadows due to the Congress’ elitist bias.     

Empowering local government or just passing the austerity buck? The changing balance of central and local government in welfare provision in England 2008–2015

This paper asks two questions: first, how did the balance of decision-making between central and local government in welfare policy in England change between 2010 and 2015? Second, to what extent has that led to divergence in the extent and manner of such provision? It finds significant areas of policy where local flexibility has been increased (such as council tax benefit, crisis loans, and funding for specialist housing), either through a change in the tier of government responsible, or ‘unringfencing’ of grants allowing local authorities greater discretion in whether to deliver particular services, although in other important areas decisions on welfare remain firmly centralized. It also concludes that in areas where responsibility has been localized, divergence has been immediate and substantial. Localization may well reduce entitlements where local authorities enjoy a financial reward for so doing and political costs are low.     

After the fall: the impact of government regulation on church attendance in Eastern Europe, 1990–2004

Previous literature modeling the demand for religion has identified socioeconomic factors, religious human capital and religious market structure as being the fundamental determinants of the level of participation in religious services and practices. Building on the existing literature, this study analyzes the effect of government regulation and intervention on religious activity. Using religion-related data as well as demographic and economic data from 22 Eastern European countries after the fall of Communism, the existence of any form of religious restrictions is found to reduce church attendance rates.     

The relationship between government and opposition in the bundestag and house of commons in the run‐up to the Maastricht Treaty

This article analyses modes of interaction between government and opposition in the German Bundestag and the British House of Commons in the run‐up to the Maastricht Treaty, and the implications of co‐operation or a lack thereof for the parties involved. The article is based on the premise that the government—opposition relationship is not derived solely from power relationships and institutional factors, but is also a matter of democratic legitimacy. Three indicators are used to ascertain the level of government—opposition co‐operation: the creation of parliamentary committees, information exchange and incentive management. Based on an institutional analysis and interviews with legislators, the finding is that although parties in Germany and the UK have created parliamentary committees dealing with European affairs, only in the former did the government utilise the new tool for co‐operation with the opposition, in terms of information exchange and incentive management. Consequently, informal co‐operation in Germany brought about an outcome compatible with the interests of the parties involved. By contrast, the lack of co‐operation with opposition parties in Britain led to an extreme parliamentary crisis.     

Union participation in economic policy making in France,Italy, Germany and Britain, 1970–1993

This study uses a specially‐developed measure of union participation in economic policy making to classify and compare the historical experiences of France, Italy, the Federal Republic of Germany and Britain between 1970 and 1993 in order to present a clearer view of the variability of union participation in economic policy making in these countries over this period than has been available up to now. It is found that union participation was concentrated in certain areas of economic policy, in particular labour market policy, and that even high levels of participation were not necessarily linked to union agreement on wage restraint. Over the period as a whole, participation was highest in Italy and lowest in Britain and France, but varied considerably over time as well as between countries. These variations were clearly linked to whether the Left was included in the government of the day as well as to the nature of the national union movements.     

Ideology,economic interests,and congressional roll-call voting: Partisan instability and Bank of the United States legislation, 1811–1816

We introduce a wrinkle into the study of Congressional roll-call voting by focusing on a period of partisan instability in American History: the Era of Good Feelings. During deviations from normal periods of two-party rule, the dominant model of voting behavior, the ideological model, loses precision in correctly classifying individual votes. We contend that a “pooled” voting model – comprised of both ideological and economic variables – performs better than the basic ideological model during these unstable periods. When party mechanisms no longer constrain or structure actions, we believe the “electoral connection” is especially important, and, thus, economic-based constituency factors must be included in models of vote choice. To explore this belief, we focus on a particularly contentious issue – the rechartering of the Bank of the United States (BUS) – which was dealt with before and after a partisan decomposition occurred in the House. Using measures developed by Poole and Rosenthal (1985, 1997), we find that the vote on the First BUS in 1811, during a stable partisan period, is organized along ideological lines. By 1816, the two-party system collapsed, and we do not find the vote on the Second BUS to exhibit much ideological structure. Conversely, we find that our pooled model predicts the vote on the Second BUS quite well, providing a substantial improvement in fit over the basic ideological classification.     

Ideological change and the economics of voting behavior in the US, 1920–2008

This paper tests the proposition that voters advance a more liberal agenda in prosperous times and turn more conservative in dire economic times. A reference-dependent utility model suggests that, with income growth, the relative demand for public goods increases and the median voter is more likely to vote Democrat. With slowing income growth, the median voter derives increased marginal utility from personal income—making taxation more painful—and is more likely to vote Republican. Ordinary and instrumented analyses of a new time series for the US median voter are encouraging of this income growth model. This work links voting behavior to economic business cycles and shows that ideological change is endogenous to income growth rates.     

Spycatcher’s little sister: the Thatcher government and the Panorama affair, 1980–1981

This article investigates the Thatcher government’s attempts to suppress or censor reporting on secret intelligence issues in the early 1980s. It examines official reactions to a BBC intrusion into the secret world, as the long-running Panorama documentary strand analysed the role and accountability of Britain’s clandestine services. It also assesses the extent of collusion between the government and the BBC’s senior management. The Panorama affair was an important waypoint on the journey towards the dramatic Spycatcher episode of the mid-1980s. The key players on the government side – Thatcher and Cabinet Secretary Robert Armstrong – failed to learn the lessons of the 1980–81 affair, that it was often more dangerous to attempt suppression than to simply let events run their course.     

Is the causal relation between foreign direct investment,trade, and economic growth complement or substitute? The case of African countries

This study examines causal nexus between foreign direct investment (FDI) and economic growth for 25 African countries within a model that also takes into consideration trade openness using more recent panel data set over the period 1980–2018. We used panel bootstrapping cointegration techniques that account for cross‐sectional dependence to test whether there is a long‐run cointegration relationship or not. The Granger causality approach is employed to conduct predictive analysis among the panel series. Our findings indicate the presence of a long‐run equilibrium nexus between the variables, and we found a bidirectional causality between foreign direct investment, trade openness, and economic growth. This study provides an insight for governments and policymakers in this region to restructure FDI and trade policies in such a way that its positive spillover would spread across the rural areas and local firms, thereby leading to an all‐inclusive sustainable economic growth and development of African countries in the long run.     

China–North Korea relations and the 19th Party Congress

China has come under increasing American pressure to lean on North Korea to curtail its nuclear weapon and ballistic missile programmes. But Chinese President Xi Jinping's priority is to maintain the domestic and international status quo to ensure the Communist Party's smooth transition behind him at the 19th Party Congress next autumn. Until that process has been completed, major change in Beijing's behaviour towards Pyongyang is unlikely.