Working Papers, Department of Economics, Aarhus School of Business, University of Aarhus
Political Ideology and Economic Freedom.
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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