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Weathering the Global Financial Crisis - Is Direct Democracy of any Help?

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  • Mario Jametti

    (University of Lugano)

Abstract

The global financial crisis and the European debt crisis have loomed large over the globe, with severe consequences on government finances in many countries. Switzerland has fared relatively well throughout this crisis. In this paper, surveying a selection of empirical research on Switzerland, we argue that direct democracy might be one (but not the only) reason why Switzerland has weathered the storm exceptionally well.

Suggested Citation

  • Mario Jametti, 2014. "Weathering the Global Financial Crisis - Is Direct Democracy of any Help?," IdEP Economic Papers 1405, USI Università della Svizzera italiana.
    • Handle: RePEc:lug:wpidep:1405
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    References listed on IDEAS

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    1. Pommerehne, Werner W., 1978. "Institutional approaches to public expenditure : Empirical evidence from Swiss municipalities," Journal of Public Economics, Elsevier, vol. 9(2), pages 255-280, April.
    2. Feld, Lars P. & Kirchgassner, Gebhard, 2000. "Direct democracy, political culture, and the outcome of economic policy: a report on the Swiss experience," European Journal of Political Economy, Elsevier, vol. 16(2), pages 287-306, June.
    3. Sergio Galletta & Mario Jametti, 2012. "How to Tame Two Leviathans? Revisiting the Effect of Direct Democracy on Local Public Expenditure," Quaderni della facoltà di Scienze economiche dell'Università di Lugano 1207, USI Università della Svizzera italiana.
    4. Feld, Lars P. & Matsusaka, John G., 2003. "Budget referendums and government spending: evidence from Swiss cantons," Journal of Public Economics, Elsevier, vol. 87(12), pages 2703-2724, December.
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    6. Brulhart, Marius & Jametti, Mario, 2006. "Vertical versus horizontal tax externalities: An empirical test," Journal of Public Economics, Elsevier, vol. 90(10-11), pages 2027-2062, November.
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    8. John G. Matsusaka, 1992. "Economics of Direct Legislation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(2), pages 541-571.
    9. Thomas Romer & Howard Rosenthal, 1979. "Bureaucrats Versus Voters: On the Political Economy of Resource Allocation by Direct Democracy," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 93(4), pages 563-587.
    10. Brülhart, Marius & Jametti, Mario, 2019. "Does tax competition tame the Leviathan?," Journal of Public Economics, Elsevier, vol. 177(C), pages 1-1.
    11. Zareh Asatryan & Thushyanthan Baskaran & Theocharis Grigoriadis & Friedrich Heinemann, 2017. "Direct Democracy and Local Public Finances under Cooperative Federalism," Scandinavian Journal of Economics, Wiley Blackwell, vol. 119(3), pages 801-820, July.
    12. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64(5), pages 416-416.
    13. Patricia Funk & Christina Gathmann, 2011. "Does Direct Democracy Reduce the Size of Government? New Evidence from Historical Data, 1890–2000," Economic Journal, Royal Economic Society, vol. 121(557), pages 1252-1280, December.
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    More about this item

    Keywords

    Fiscal Direct democracy; Financial Crisis;

    JEL classification:

    • R50 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - General
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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