scholarly journals De Facto Versus de Jure Political Institutions in the Long-Run: A Multivariate Analysis, 1820–2000

2016 ◽  
Vol 130 (2) ◽  
pp. 759-777 ◽  
Author(s):  
Peter Foldvari
2019 ◽  
Vol 129 (623) ◽  
pp. 2745-2778 ◽  
Author(s):  
Traviss Cassidy

Abstract We estimate the long-run effects of oil wealth on development by exploiting spatial variation in sedimentary basins—areas where petroleum can potentially form. Instrumental variables estimates indicate that oil production impedes democracy and fiscal capacity development, increases corruption, and raises GDP per capita without significantly harming the non-resource sectors of the economy. We find no evidence that oil production increases internal armed conflict, coup attempts, or political purges. In several specifications failure to account for endogeneity leads to substantial underestimation of the adverse effects of oil, suggesting that countries with higher-quality political institutions and greater fiscal capacity disproportionately select into oil production.


2018 ◽  
Vol 15 (2) ◽  
pp. 351-380 ◽  
Author(s):  
ROBERTO RICCIUTI ◽  
ANTONIO SAVOIA ◽  
KUNAL SEN

AbstractA central aspect of institutional development in developing economies is building tax systems capable of raising revenues from broad tax bases, i.e. fiscal capacity. While it is recognised that fiscal capacity is pivotal for state building and economic development, it is less clear what its origins are and what explains its cross-country differences. We focus on political institutions, seen as stronger systems of checks and balances on the executive. Exploiting a recent database on public sector performance in developing economies and an IV strategy, we estimate their long-run impact, distinguishing between the accountability and transparency of fiscal institutions (impartiality) and their effectiveness in extracting revenues. We find that stronger constraints on the executive foster the impartiality of tax systems. However, there is no robust evidence that they also improve its effectiveness. Our findings also suggest that the overall impact on both total tax revenues and income tax is economically relevant.


2020 ◽  
Vol 16 (6) ◽  
pp. 883-910
Author(s):  
Nauro Campos ◽  
Menelaos Karanasos ◽  
Panagiotis Koutroumpis ◽  
Zihui Zhang

AbstractAre institutions a deep cause of economic growth? This paper tries to answer this question in a novel manner by focusing on within-country variation, over long periods of time, using a new hand-collected data set on institutions and the power-ARCH econometric framework. Focusing on the case of Brazil since 1870, our results suggest (a) that both changes in formal political institutions and informal political instability affect economic growth negatively, (b) there are important differences in terms of their short- versus long-run behaviour, and (c) not all but just a few selected institutions affect economic growth in the long-run.


Humanomics ◽  
2011 ◽  
Vol 27 (1) ◽  
pp. 41-52 ◽  
Author(s):  
G. Bhalachandran

PurposeThe purpose of this seminal paper is to present the concept of sustainability in its purest form as conceived by Kautilya and bring out its relevance to the current issues and the areas of concern in the global perspectives.Design/methodology/approachThis paper goes with the premise that the concept of sustainable development (SD) as enunciated by the western theorists has not been fitted in an integrated framework. An attempt is made in this study, to bring to light an unwritten model of SD of Kautilya, which is universal in approach and relevant to many of the current issues of today.FindingsThe Kautilya's model of SD is an assimilation of idealistic and realistic views of human life. The quintessence of this model is that SD can be realized only if each one in a society lives for the other and all collectively for the welfare of the mankind.Research limitations/implicationsThe success of this model depends on the level of understanding, design of socio‐economic and political institutions required, the goals and the means set for oneself and society and the degree of accountability exhibited in implementing the model.Practical implicationsThis model can be tailored to suit the requirements of modern society in the short run as well as in the long run.Originality/valueThis paper is original in nature because a modern concept like SD is analytically linked to the development‐design of Kautilya with a view to infusing profundity, realism and applicability to it.


2017 ◽  
Vol 6 (3) ◽  
pp. 340-358 ◽  
Author(s):  
Jacob Lihn ◽  
Christian Bjørnskov

Purpose The purpose of this paper is to explore how the strength of political veto players affects the long-run credibility of economic institutions and how they jointly affect entrepreneurial activity. Design/methodology/approach The authors employ an annual panel covering 30 OECD countries from 1993 to 2011. Findings An error correction model identifies a positive and significant short-run effect on self-employment from large government spending at low levels of veto player strength. A static model conversely indicates that smaller government spending is positively associated with entrepreneurship at lower levels of veto player strength in the long run. Originality/value The authors are the first to explore the interaction of economic and political institutions in the development of entrepreneurship.


2016 ◽  
Vol 33 (2) ◽  
pp. 167-181 ◽  
Author(s):  
Yikai Wang

Why do some middle-income economies implement policies to achieve sustainable growth driven by innovation, while others fail to do so? In this paper, I propose a politico-economic explanation: innovation leads to the creative destruction of existing technology that can harm the interests of the pivotal policy maker. Therefore, the pivotal policy maker may implement policies that prevent innovation and harm potential growth in order to protect its own interests. Political institutions, which are endogenously determined by fundamentals of the economy such as state capacity, shape policy maker decisions. This paper studies the relationship between growth, policies, institutions, and fundamentals. Understanding the relationship allows for the design of more efficient aid programs to help the growth of middle-income economies, especially in the long run.


2019 ◽  
Vol 29 (Supplement_4) ◽  
Author(s):  
J Gingrich

Abstract Background Policy is rarely a direct reflection of public opinion. Party systems and patterns of political competition shape the way issues are presented in politics and the incentive politicians have to act on them. Despite the alleged pro-elderly bias of many political institutions in European countries, and the potential for some types of spending on the elderly to provide broader social benefits, policymakers often do not introduce the most effective policies for supporting healthy ageing. Methods Political manifestos and voting patterns will be examined in order to determine how/if public opinions are translating into changes in government that want to tear down the welfare state and blame it on ageing. Results Although it is true that public spending (e.g. pensions, health) on the elderly remains more extensive and insulated from cuts than other forms of spending, second, in many (not all) countries policies that would help the elderly age in a healthy way are to introduced. These latter policies, which include spending on the poorest elderly, ensuring access to high quality home care and other services, and investing in declining regions where elderly people are often disproportionately likely to live, often are limited. Conclusions Where cross-class/cross-generational coalitions come together to address gender inequities (among the elderly and working age), and develop public services, high road models are possible. Where conflict is framed largely inter-generationally, the well-being of pensioners may be preserved in the short-run, but less investment in the long-run infrastructure of healthy ageing emerges. To make these arguments, the paper shows descriptive patterns of policy developments from the 1980s to today, combined with a brief case study of the UK.


2016 ◽  
Vol 21 (1) ◽  
pp. 183-213 ◽  
Author(s):  
Christos Pargianas

The paper suggests that the political changes brought about by the increase in the proportion of college graduates in the U.S. labor force in the 1970s may have contributed to the decline in the college premium during the 1970s and its increase during the 1980s and 1990s. The study argues that the proportion of skilled workers in the labor force affected their relative importance in the political process. Thus, the increase in the proportion of skilled workers during the 1970s reduced the skill premium in the short run, but induced a change in policies that favored skilled workers and increased the skill premium in the long run.


2016 ◽  
Vol 61 (4) ◽  
pp. 903-929 ◽  
Author(s):  
Jay Goodliffe ◽  
Darren Hawkins

How and to what extent do states influence the level of democracy and autocracy in other states? We argue that states exist internationally in dependence networks with each other and that those networks provide pathways for influence on a state’s domestic institutions. For any given state, a dependence network is a set of partner states with whom it regularly engages in exchanges of valued goods, where those exchanges would be costly to break. We find that an index of three such networks–trade, security and shared international organization membership–significantly influences the domestic political institutions in a given state. These changes are substantively large in the long run, similar in size to regional and global levels of democracy. State capabilities figure heavily in our network measures, thus emphasizing the role of power in the diffusion of domestic political institutions. We also find that network-influenced change works both ways: states can become more autocratic or more democratic.


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