Minority government and fiscal policy outcomes-new evidence
(2014) NEKH01 20141Department of Economics
- Abstract
- Using a panel of 18 European OECD countries over the period 1979-2011, this paper re-examines and extends previous empirical evidence on the effects of minority government on fiscal policy outcomes. First government primary balance is separated into revenues and expenditure according to Kontopoulos and Perotti (1999). Second minority governments are categorized into dummy variables according to Edin and Ohlsson (1991). Evidence show that political fragmentation appears to be more significant in times of economic crises, and that minority government affect government primary balance, revenues and expenditure negatively. Surplus coalition government affect the government primary negatively in the 2000s, as opposed to single minority... (More)
- Using a panel of 18 European OECD countries over the period 1979-2011, this paper re-examines and extends previous empirical evidence on the effects of minority government on fiscal policy outcomes. First government primary balance is separated into revenues and expenditure according to Kontopoulos and Perotti (1999). Second minority governments are categorized into dummy variables according to Edin and Ohlsson (1991). Evidence show that political fragmentation appears to be more significant in times of economic crises, and that minority government affect government primary balance, revenues and expenditure negatively. Surplus coalition government affect the government primary negatively in the 2000s, as opposed to single minority government. These results suggest that due to the complex and ambiguous nature of minority government, it cannot be directly translated into number of parties in ruling coalition. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/4631446
- author
- Towliat, Victoria Bahar LU
- supervisor
- organization
- course
- NEKH01 20141
- year
- 2014
- type
- M2 - Bachelor Degree
- subject
- keywords
- minority government, government primary balance, expenditure, revenue, political fragmentation.
- language
- English
- id
- 4631446
- date added to LUP
- 2014-09-22 14:04:31
- date last changed
- 2014-09-22 14:04:31
@misc{4631446, abstract = {{Using a panel of 18 European OECD countries over the period 1979-2011, this paper re-examines and extends previous empirical evidence on the effects of minority government on fiscal policy outcomes. First government primary balance is separated into revenues and expenditure according to Kontopoulos and Perotti (1999). Second minority governments are categorized into dummy variables according to Edin and Ohlsson (1991). Evidence show that political fragmentation appears to be more significant in times of economic crises, and that minority government affect government primary balance, revenues and expenditure negatively. Surplus coalition government affect the government primary negatively in the 2000s, as opposed to single minority government. These results suggest that due to the complex and ambiguous nature of minority government, it cannot be directly translated into number of parties in ruling coalition.}}, author = {{Towliat, Victoria Bahar}}, language = {{eng}}, note = {{Student Paper}}, title = {{Minority government and fiscal policy outcomes-new evidence}}, year = {{2014}}, }