Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/201959 
Year of Publication: 
2019
Series/Report no.: 
CESifo Working Paper No. 7733
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
I use new data on central and general governments for 23 OECD countries over the period 1960-2015 (unbalanced panel) to examine fiscal performance under minority governments. The results do not suggest that minority governments had higher fiscal deficits and public expenditure than majority governments – corroborating many previous studies. An innovation of my study is to examine fiscal policies of minority governments that enjoy organized support of opposition parties. The results do not show that minority governments that enjoy organized support of opposition parties increased public expenditure to a larger extent than majority governments. If anything, fiscal deficits were somewhat higher under single-party minority governments with organized support of opposition parties than under majority governments especially. Minority and majority governments had quite similar fiscal performance in OECD countries.
Subjects: 
minority governments
organized support of opposition parties
budget deficits
public expenditure
general and central government
OECD countries
panel data models
JEL: 
D72
H00
C23
P16
Document Type: 
Working Paper
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