Parties Matter in Allocating Expenditures: Evidence from Germany

I test if parties matter with respect to the allocation of public expenditures in Germany. Considering the allocation of rights and duties due to the federal structure, two econometric models are estimated. First, a SURE model analyses spending at the federal level for the period from 1950 to 2003 and finds evidence for partisan politics and election year effects. Second, I examine the spending behaviour in the states from 1974 to 2004 in a panel data framework. In comparison to the federal level, policy has weaker impacts on the allocation of expenditures in the states.Allocation of public expenditures, partisan politics, fiscal federalism

Economic Freedom and Government Ideology Across the German States

This paper examines whether government ideology influenced economic freedom across the German states. The results show that in former West Germany rightwing governments promoted economic freedom, whereas leftwing governments confined it. In former East Germany, however, rightwing governments have not been associated with propagating economic freedom. This finding appears to conflict with the common notion of policy convergence at the federal level. In fact, the observed variation in political preferences across states may indicate that politicians gratify the local electorate and, in return, offer moderate policies at the federal level.economic freedom, government and political ideology, institutions, panel data

Social Expenditures as a Political Cue Ball?: OECD Countries under Examination

This paper examines how policy affects social expenditures. Analyzing an OECD panel from 1980 to 2003, five political variables are tested: Election- and pre-election years, the ideological party composition of the governments, the number of coalition partners and the fact, if the ruling government has a majority in parliament or not (minority government). I find that neither of these variables have an impact on social expenditures using different model set-ups. The influence of national governments seems to be limited by the globalization, which indeed impairs social expenditures.social expenditures, electoral cycles, partisan politics, globalisation

Ideology and cultural policy

By examining voting behavior in a referendum on the construction of a concert hall in Germany, I show that political ideology influences cultural policy. The results suggest that resistance to the concert hall was particularly strong in electoral districts in which majorities of citizens vote for the social democrats. By contrast, constituents of rightwing parties voted more in favor of the project. This voting pattern indicates that cultural policy is ideologyinduced. The direct-democratic vote against the concert hall is not in line with the voting behavior of the representatives in the city council. My findings thus show that the voting behavior of political representatives may be decoupled from the preferences of their constituents even in closely knit jurisdictions in which the principal-agent relationship between voters and representatives is usually thought to favor the principals. Moreover, this decoupling has been documented for a policy issue that does not require substantial information or specialized knowledge to be evaluated but rather voters' decisions are based on ideological convictions.cultural policy, ideology, partisan politics, referendum, direct democracy

Social Security in Germany: A Prey of Political Opportunism?

This paper examines how politicians influenced social security policy in Germany. Using yearly data from the German Pension Insurance from 1957 to 2005, revenues as well as expenditures are analysed in linear regression models, respectively. In accordance with opportunistic political behaviour, revenues from contributions decreased in pre-election years. Most important, pension expenditures increased in election years. Interestingly, the CDU/FDP governments provided higher subsidies to the social security system than the grand coalition and the SPD/GR government. Overall, there is no evidence for the prospect, that left coalitions caused higher intergenerational redistribution than right governments.social security, partisan politics, pension system

Is German Domestic Social Policy Politically Controversial?

This paper investigates empirically the influence of government ideology on social policy using German data. Examining the funding and the benefits of social security and public healthcare policy, my results suggest that policies implemented by governments dominated by left- and rightwing parties were similar over the 1951-2007 period. Leftwing governments, however, spent more in the 1970s and rightwing governments did so after German Reunification in 1990. Since policy convergence encourages new parties to enter the political arena, and party platforms on social policy matters are likely to undergo further changes in light of demographic change, the observed pattern may thus be a transitory phenomenon.social policy, political business and partisan cycles, government ideology, policy polarization, demographic change

The growth of public health expenditures in OECD countries: do government ideology and electoral motives matter?

This paper empirically evaluates whether government ideology and electoral motives influenced the growth of public health expenditures in 18 OECD countries over the 1971-2004 period. The results suggest that incumbents behaved opportunistically and increased the growth of public health expenditures in election years. Government ideology did not have an influence. These findings indicate (1) the importance of public health in policy debates before elections and (2) the political pressure towards re-organizing public health policy platforms especially in times of demographic change.public health expenditures, health policies, government ideology, partisan politics, electoral cycles, panel data

Intelligence and Corruption

This study finds that countries with high-IQ populations enjoy less corruption. I propose that this is because intelligent people have longer time horizons.Intelligence, corruption, institutions

Islam and Democracy

Using the POLITY IV and Freedom House indices, Rowley and Smith (2009) found that countries with Muslim majorities enjoy less freedom and are less democratic than countries in which Muslims are a minority. Because the POLITY IV and Freedom House indices have been criticized on several grounds, I reinvestigate Rowley and Smith’s finding using the new Democracy-Dictatorship data from Cheibub et al. (2010). The empirical results confirm that countries with Muslim majorities are indeed less likely to be democratic.Islam, religion, democracy, political institutions

Unemployment, Human Capital Depreciation and Pension Benefits: An Empirical Evaluation of German Data

This paper investigates empirically how unemployment-induced employment-breaks at different career stages influence pension benefits. The analysis is based on German data. I distinguish four different career phases and investigate to what extent the prevailing social security policy compensated for earning losses. The results suggest that (1) losses in pension benefits were the greatest if unemployment occurred in the middle of a career (between 31 50); (2) social security policies have had a mitigating effect on losses in pension benefits. These findings indicate that institutions have a decided influence on how career patterns translate into pension benefits.employment histories, career interruptions, pension benefits, social security policy, human capital depreciation, institutions