Partisan Politics: The Empirical Evidence from OECD Panel Studies

88 Pages Posted: 25 Aug 2016

See all articles by Niklas Potrafke

Niklas Potrafke

CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute

Date Written: July 2016

Abstract

This paper describes the empirical evidence on partisan politics in OECD panel studies. I elaborate on the research designs, the measurement of government ideology and why the empirical studies do not and cannot derive causal effects. Discussing about 100 panel data studies, the results indicate that leftwing and rightwing governments pursued different economic policies until the 1990s: the size and scope of government was larger when leftwing governments were in power. Partisan politics have not disappeared since the 1990s, but have certainly become less pronounced. In particular, government ideology still seems to influence policies such as privatization and market deregulation. I discuss the consequences of declining electoral cohesion and what future research needs to explore.

Keywords: partisan politics, government ideology, economic policy-making, declining electoral cohesion, panel data models, causal effects

JEL Classification: D720, H000, C230

Suggested Citation

Potrafke, Niklas, Partisan Politics: The Empirical Evidence from OECD Panel Studies (July 2016). CESifo Working Paper Series No. 6024, Available at SSRN: https://ssrn.com/abstract=2829310

Niklas Potrafke (Contact Author)

CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute ( email )

Poschinger Str. 5
Munich, 01069
Germany

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