Showing 1 - 10 of 167
This paper investigates the relationship between trade openness and the size of governments, both theoretically and … empirically. We argue that openness can increase the size of governments through two channels: (1) a terms of trade externality … openness and government size and we explore its determinants. Consistently with the terms of trade externality channel, we show …
Persistent link: https://www.econbiz.de/10005123927
government consumption plays a risk-reducing role in economies exposed to a significant amount of external risk. When openness is … is the interaction terms that enter significantly, and the openness term that loses significance (or turns negative). The …
Persistent link: https://www.econbiz.de/10005136473
This paper presents instrumental variables estimates of the effects of GDP per capita volatility on the size of government. We show that for a panel of 157 countries spanning more than half a century rainfall volatility has a significant positive effect on GDP per capita volatility in countries...
Persistent link: https://www.econbiz.de/10011083816
trade openness, and we seek support for a causal interpretation of this result in instrumental variable specifications. …
Persistent link: https://www.econbiz.de/10011084286
We construct a model of revolution and transition to democracy under an individualistic and a collectivist culture. The main result is that, despite facing potentially larger collective action problems, countries with an individualistic culture are more likely to end up adopting democracy faster...
Persistent link: https://www.econbiz.de/10011266531
the income elasticity of government spending and find no support for views that either democracy, inequality, or openness …
Persistent link: https://www.econbiz.de/10009293665
We describe a model of fundraising in social groups, where private information about quality of provision is transmitted by social proximity. Individuals engage in voluntary provision of a pure collective good that is consumed by both neighbors and non-neighbors. We show that, unlike in the case...
Persistent link: https://www.econbiz.de/10009320406
In their survey of the literature on ethnic fractionalization and economic performance, Alesina and La Ferrara (JEL 2005) identify two main directions for future research. One is to improve the measurement of diversity and the other to treat diversity as an endogenous variable. This paper tries...
Persistent link: https://www.econbiz.de/10008458292
We try to demonstrate how economists may engage in research on comparative politics, relating the size and composition of government spending to the political system. A Downsian model of electoral competition and forward-looking voting indicates that majoritarian---as opposed to...
Persistent link: https://www.econbiz.de/10005662287
Democratic systems are built, with good reason, on majoritarian principles, but their legitimacy requires the protection of strongly held minority preferences. The challenge is to do so while treating every voter equally and preserving aggregate welfare. One possible solution is storable votes:...
Persistent link: https://www.econbiz.de/10005662342