Author

Andrew Burnos

Date of Award

3-2012

Document Type

Thesis

Department

Political Science

First Advisor

Patrick Donnay

Abstract

Economics around the globe has been a growing issue of late due to the current economic crisis. This study focuses on political institutional factors that influence spending in a particular country. The variables used in this study include Gross Domestic Product (GDP), Tax Revenue as Percent of GDP, and current account balance to name a few. This research looks at the relationship between proportional representation compared to majoritarian systems as well as presidential compared to parliamentary systems and how these relate to public budgeting. This research updates the analysis of Persson and Tabellini in their book The Economic Effects of Constitutions. They found that presidential systems promote smaller public sectors, whereas proportional representation results in greater government spending and on average a larger budget deficit. Results confirm their finding in regards to presidential systems as well as proportional representation. This suggests that constitutional design can have a significant impact on the financial performance of political systems.

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