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Title:Protestantism and government spendig: A negative relationship? An empirical application to Swiss Cantons PDF Logo
Authors:Fischer, Justina A. V.
Schneider, Friedrich
Issue Date:2007
Series/Report no.:SSE/EFI Working Paper Series in Economics and Finance 685
Abstract:Recent empirical growth literature suggests that cultural factors play a decisive role in economic development, while empirical evidence for their impact on government activity remains scant. In this paper, we conjecture based on Weber's Protestant Ethics that 'Protestant values' such as self-reliance and austerity should affect both the size and scope of governments. More specifically, we hypothesize that smaller government budgets should be observable in more Protestant jurisdictions. Using a panel of sub-federal expenditure in 26 Swiss cantons from 1980 to 1998 we find supporting evidence, observing that the share of Protestants in the cantonal residential population exerts a spending dampening impact. Our results suggest that cultural factors should not be omitted from future public finance analyses.
Subjects:Protestantism
Culture
Government Spending
Public Finance
JEL:A13
H30
H72
Z10
Document Type:Working Paper
Appears in Collections:SSE/EFI Working Paper Series in Economics and Finance, EFI - The Economic Research Institute, Stockholm School of Economics

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