How the left prospers from prosperity
This paper investigates the relationship between fluctuations in economic growth, unemployment, and voting along a left-right axis. I estimate a model that explains how political fluctuations are caused by economic fluctuations in the OECD countries. I find that higher economic growth causes a shift to the left of policy sentiments. I hold the provision of social insurance by the welfare state to be the key to understanding this relationship. I also find that the relationship changes over the sample period. I hold the tax increase needed to finance the expansion of the welfare state to be the reason for this.
Year of publication: |
2008
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Authors: | Markussen, Simen |
Published in: |
European Journal of Political Economy. - Elsevier, ISSN 0176-2680. - Vol. 24.2008, 2, p. 329-342
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Publisher: |
Elsevier |
Saved in:
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