Political frictions and public policy outcomes

Article


Grechyna, D. 2016. Political frictions and public policy outcomes. Journal of Comparative Economics. 44 (3), pp. 484-495. https://doi.org/10.1016/j.jce.2016.06.001
TypeArticle
TitlePolitical frictions and public policy outcomes
AuthorsGrechyna, D.
Abstract

We study the role of political frictions in public policy outcomes. We propose a simple model of fiscal policy that combines a lack of commitment by the government, political turnover, and another political friction that can be interpreted either as political polarization or as public rent-seeking. We show that political turnover increases public debt levels, while political polarization or public rent-seeking leads to higher public spending. We evaluate the importance of different political frictions for fiscal policy outcomes using a sample of twenty developed countries. We find that the data on political instability combined with the data on public rent-seeking explain 25% of the variation in public debt levels.

PublisherElsevier
JournalJournal of Comparative Economics
ISSN0147-5967
Publication dates
PrintAug 2016
Online06 Jun 2016
Publication process dates
Deposited06 Jun 2016
Accepted05 Jun 2016
Output statusPublished
Publisher's version
License
Accepted author manuscript
File Access Level
Restricted
Digital Object Identifier (DOI)https://doi.org/10.1016/j.jce.2016.06.001
LanguageEnglish
Permalink -

https://repository.mdx.ac.uk/item/86705

Download files

  • 31
    total views
  • 5
    total downloads
  • 0
    views this month
  • 0
    downloads this month

Export as

Related outputs

Determinants of ins and outs of unemployment
Ductor, L. and Grechyna, D. 2020. Determinants of ins and outs of unemployment. Applied Economics Letters. 27 (11), pp. 892-898. https://doi.org/10.1080/13504851.2019.1646858
Firm size, bank size, and financial development
Grechyna, D. 2018. Firm size, bank size, and financial development. Journal of Economic Dynamics and Control. 97, pp. 19-37. https://doi.org/10.1016/j.jedc.2018.09.004
Shall we riot too? The geographical neighbor impact on political instability
Grechyna, D. 2018. Shall we riot too? The geographical neighbor impact on political instability. Kyklos. 71 (4), pp. 581-612. https://doi.org/10.1111/kykl.12187
Financial development, real sector output, and economic growth
Ductor, L. and Grechyna, D. 2015. Financial development, real sector output, and economic growth. International Review of Economics and Finance. 37, pp. 393-405. https://doi.org/10.1016/j.iref.2015.01.001
On the determinants of political polarization
Grechyna, D. 2016. On the determinants of political polarization. Economics Letters. 144, pp. 10-14. https://doi.org/10.1016/j.econlet.2016.04.018
Debt and deficit fluctuations in a time-consistent setup
Grechyna, D. 2016. Debt and deficit fluctuations in a time-consistent setup. Macroeconomic Dynamics. 20 (7), pp. 1771-1794. https://doi.org/10.1017/S1365100515000073
Financial development, real sector, and economic growth
Ductor, L. and Grechyna, D. 2015. Financial development, real sector, and economic growth. International Review of Economics and Finance. 37, pp. 393-405. https://doi.org/10.1016/j.iref.2015.01.001