1. Political stability and fiscal policy : time series evidence for the Swiss federal level since 1849
- Author
-
Feld, Lars P. and Schaltegger, Christoph A.
- Subjects
Nachhaltigkeit ,Verfassungsreform ,Finanzpolitik ,Politische Stabilität ,political stability ,constitutional changes ,Finanzgeschichte ,Schweiz ,ddc:330 ,D78 ,H11 ,H50 ,H61 ,fiscal policy - Abstract
This paper explores the role of political stability on fiscal policy choices in a time-series analysis over 158 years on the Swiss federal level. We argue that the fiscal-commons problem of public finances is affected by the time-horizon of a finance minister. Arguably, the incentives for an incumbent to maintain a good reputation with sound policy decisions are stronger the longer the time-horizon of a respective term. In addition, a finance minister who succeeds to stay a long time in office normally enjoys a politically powerful position towards the parliament, the administration and the interest groups to influence policy decisions. In contrast, frequent government turnover weakens the position of the finance minister.
- Published
- 2009