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Minority government and fiscal policy outcomes-new evidence

Towliat, Victoria Bahar LU (2014) NEKH01 20141
Department 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)
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author
Towliat, Victoria Bahar LU
supervisor
organization
course
NEKH01 20141
year
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},
  keyword      = {minority government,government primary balance,expenditure,revenue,political fragmentation.},
  language     = {eng},
  note         = {Student Paper},
  title        = {Minority government and fiscal policy outcomes-new evidence},
  year         = {2014},
}