TY - JOUR
T1 - Economic insecurity and political stability
T2 - A case for growth-Targeting systemic vote
AU - Matakos, Konstantinos
AU - Xefteris, Dimitrios
PY - 2020/7/1
Y1 - 2020/7/1
N2 - In this paper, we focus on the years before the Great Recession (1960-2007) and, after addressing possible issues of endogeneity, we study the effects of economic fluctuations on political stability. We find that when the economy is not in turmoil, there is a strong positive relationship between unemployment (i.e the major macroeconomic determinant of economic insecurity) and electoral support for systemic parties (i.e. parties with a serious aspiration to governing). That is, democratic politics respond to increasing economic insecurity by enhancing the prospects of political stability and, consequently, economic prosperity and growth.
AB - In this paper, we focus on the years before the Great Recession (1960-2007) and, after addressing possible issues of endogeneity, we study the effects of economic fluctuations on political stability. We find that when the economy is not in turmoil, there is a strong positive relationship between unemployment (i.e the major macroeconomic determinant of economic insecurity) and electoral support for systemic parties (i.e. parties with a serious aspiration to governing). That is, democratic politics respond to increasing economic insecurity by enhancing the prospects of political stability and, consequently, economic prosperity and growth.
KW - C26
KW - D72
KW - O42
UR - http://www.scopus.com/inward/record.url?scp=85090331989&partnerID=8YFLogxK
U2 - 10.1093/oep/gpz048
DO - 10.1093/oep/gpz048
M3 - Article
AN - SCOPUS:85090331989
SN - 0030-7653
VL - 72
SP - 829
EP - 862
JO - Oxford Economic Papers
JF - Oxford Economic Papers
IS - 3
ER -
