Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/73820 
Year of Publication: 
2013
Series/Report no.: 
ifo Working Paper No. 162
Publisher: 
ifo Institute - Leibniz Institute for Economic Research at the University of Munich, Munich
Abstract: 
We investigate empirically how party ideology influences size and scope of government as measured by the size of government, tax structure and labor market regulation. Our dataset comprises 49 US states over the 1993–2009 period. We employ the new data onthe ideological mapping of US legislatures by Shor and McCarty (2011) that considers spatial and temporal differences in Democratic and Republican Party ideology. We distinguish between three types of divided government: overall divided government, proposal division and approval division. The main result suggests that Republican governors have been more active in deregulating labor markets. We find that ideology-inducedpolicies were counteracted under overall divided government and proposaldivision.
Subjects: 
Size and scope of government
party ideology
partisan politics
divided government
US states
panel data
JEL: 
D72
H70
O51
Document Type: 
Working Paper

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