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Department of Economics, Aarhus School of Business, University of Aarhus Working Papers, Department of Economics, Aarhus School of Business, University of Aarhus

No 05-8:
Political Ideology and Economic Freedom.

Christian Bjørnskov ()

Abstract: This paper examines the association between political ideology and the size of government and quality of the legal system and regulations. A cross-country indicator of government and citizen ideology is presented. Empirical results suggest that ideologically leftwing governments increase the size of government while the long-term ideological convictions of citizens affect the size of government and the quality of the legal system and regulations. These effects depend on the degree of political competition while ideology also affects countries’ institutional response to economic crisis.

Keywords: Political Economy; Institutional Quality; Ideology; Social Norms; (follow links to similar papers)

JEL-Codes: P16; Z13; (follow links to similar papers)

44 pages, January 1, 2005

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