Skip to main content
×
Home
    • Aa
    • Aa

Party, Ideology, and Deficits: Provincial Fiscal Policy and the Cameron Thesis, 1966–2009

  • Christopher A. Simon (a1) and Raymond Tatalovich (a2)
Abstract
Abstract

In a 1985 publication David Cameron reported that historically leftist governments had governed with smaller deficits than rightist governments. The party ideology variable was incorporated into a large body of subsequent research, mainly by economists, to study the growth of public spending and indebtedness. Most agreed with Cameron; some did not. Virtually all studies focused on western European nations (but not subnational governments). This study analyzes provincial deficits or surpluses over the period 1966 to 2009 and determines that rightist parties, despite controls for economic and other political variables, have lower budgetary deficits, a finding which contradicts Cameron but is consistent with five previous studies of provincial spending in Canada.

Résumé

Dans une publication 1985, David Cameron a indiqué que les gouvernements de gauche historiquement avaient gouverné avec des déficits plus faibles que les gouvernements de droite. La variable de l'idéologie du parti a été intégrée dans un vaste corpus de recherches ultérieures, principalement par les économistes pour étudier la croissance des dépenses publiques et de l'endettement. La plupart étaient d'accord avec Cameron, d'autres pas; pratiquement toutes les études ont porté sur les pays d'Europe occidentale (mais pas les gouvernements infranationaux). Cette étude analyse les déficits ou les excédents provinciaux au cours de la période 1966–2009 et détermine que les partis de droite, malgré les contrôles pour les variables politiques, économiques et autres, ont des déficits budgétaires inférieurs, une conclusion qui contredit Cameron, mais est compatible avec cinq études antérieures sur les dépenses provinciales au Canada.

Copyright
Corresponding author
Department of Political Science, University of Utah, 260 S. Central Campus Drive, Orson Spencer Hall Room 252, Salt Lake City, UT 84112. Email: simon@cppa.utah.edu
Department of Political Science, Loyola University Chicago, 1032 West Sheridan Road, Coffey Hall 315, Chicago, IL 60660. Email: rtatalo@luc.edu
Linked references
Hide All

This list contains references from the content that can be linked to their source. For a full set of references and notes please see the PDF or HTML where available.

Sohrab Abizadeh and John A. Gray. 1992. “Politics and Provincial Government Spending in Canada.” Canadian Public Administration, 35 (4): 519–33.


Alberto Alesina . 1989. “Politics and Business Cycles in Industrial Democracies.” Economic Policy 8: 5498.

Alberto Alesina , Gerald D. Cohen and Nouriel Roubini. 1993. “Electoral Business Cycles in Industrial Democracies.” European Journal of Political Economy 9: 123.

Manuel Arellano and Stephen Bond. 1991. “Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations.” Review of Economic Studies 58 (2): 277–97.

André Blais , Jiyoon Kim and Martial Foucault. 2010. “Public Spending, Public Deficits and Government Coalitions.” Political Studies 58: 829–46.

Marc André Bodet . 2013. “Representation at the Margins: The Impact of Governing Parties on Spending in Canada.” Party Politics 19 (4): 665–82.

Carles Boix . 1997. “Political Parties and the Supply Side of the Economy: The Provision of Physical and Human Capital in Advanced Economies, 1960–90.” American Journal of Political Science 41 (3): 814–45.

Stephen A. Borrelli and Terry J. Royed. 1995. “Government ‘Strength’ and Budget Deficits in Advanced Democracies.” European Journal of Political Research 28: 225–60.

Thomas Bräuninger . 2005. “A Partisan Model of Government Expenditure.” Public Choice 125 (3/4): 409–29.

Fredrik Carlsen . 1997. “Counterfiscal Policies and Partisan Politics: Evidence from Industrialized Countries.” Applied Economics 29: 145–51.

Francis G. Castles and Peter Mair. 1984. “Left-Right Political Scales: Some ‘Expert’ Judgments.” European Journal of Political Research 12: 7388.

Jeffrey Clemens and Stephen Miran. 2012. “Fiscal Policy Multipliers on Subnational Government Spending.” American Economic Journal: Economic Policy 4 (2): 4668.


Thomas R. Cusack 1999. “Partisan Politics and Fiscal Policy. Comparative Political Studies 32: 464–86.

Jakob De Haan and Jan-Egbert Sturm. 1997. “Political and Economic Determinants of OECD Budget Deficits and Government Expenditures: A Reinvestigation.” European Journal of Political Economy 13: 739–50.

Jakob De Hann and Jan-Egbert Sturm. 1994. “Political and Institutional Determinants of Fiscal Policy in the European Community.” Public Choice 80: 157–72.

Thomas Dye . 1966. Politics, Economics, and the Public. Chicago: Rand McNally.

Per-Anders Edin and Henry Ohlsson. 1991. “Political Determinants of Budget Deficits: Coalition Effects versus Minority Effects.” European Economic Review 35: 15971603.

Bruno Frey and Friedrich Schneider. 1978a. “A Political-Economic Model of the United Kingdom.” Economic Journal 88: 243–54.

Bruno Frey and Friedrich Schneider. 1978b. “An Empirical Study of Politico-Economic Interaction in the United States.” The Review of Economics and Statistics 60: 174–83.


Geoffrey Garrett . 1998. Partisan Politics in the Global Economy. Cambridge: Cambridge University Press.

Geoffrey Garrett . 1996. “Capital Mobility, Trade, and the Domestic Politics of Economic Policy.” In Internationalization and Domestic Politics, ed. Robert O. Keohane and Helen V. Milner. Cambridge: Cambridge University Press.


Michael A. Geist 1997–1998. “Balanced Budget Legislation: An Assessment of the Recent Canadian Experience.” Ottawa Law Review 29: 138.

Vittorio Grilli , Donato Masciandaro, Guido Tabellini, Edmond Malinvaud and Marco Pagano. 1991. “Political and Monetary Institutions and Public Financial Policies in the Industrial Countries.” Economic Policy 6 (13): 341–92.


Sung Deuk Hahm , Mark S. Kamlet and David C. Mowery. 1996. “The Political Economy of Deficit Spending in Nine Industrialized Parliamentary Democracies: The Role of Fiscal Institutions.” Comparative Political Studies 29: 5277.

John Huber and Ronald Inglehart. 1995. “Expert Interpretations of Party Space and Party Locations in 42 Societies.” Party Politics 1: 73111.

Ronald D. Kneebone 1994. “Deficits and Debt in Canada: Some Lessons from Recent History.” Canadian Public Policy 20 (2): 152–64.

Ronald D. Kneebone and Kenneth McKenzie. 1999. Past (In)Discretions: Canadian Federal and Provincial Fiscal Policy.” Toronto: University of Toronto Press, Centre for Public Management.

Ronald D. Kneebone and Kenneth J. McKenzie. 2001. “Electoral and Partisan Cycles in Fiscal Policy: An Examination of Canadian Provinces.” International Tax and Public Finance 8: 753–74.

Saeid Mahdavi and Joakim Westerlund. 2011. “Fiscal Stringency and Fiscal Sustainability: Panel Evidence from the American State and Local Governments.” Journal of Policy Modeling 33: 953–69.

Elitza Mileva . 2007. “Using Arellano-Bond Dynamic GMM Estimators in STATA.” Paper presented at Department of Economics, Fordham University, July 9. http://www.fordham.edu/economics/mcleod/Elitz-UsingArellano%E2%80%93BondGMMEstimators.pdf (August 29, 2013).


Werner W. Pommerehne 1978. “Institutional Approaches to Public Expenditure: Empirical Evidence from Swiss Municipalities.” Journal of Public Economics 9: 255–80.

James Poterba . 1996. “Budget Institutions and Fiscal Policy in the U.S. States.” American Economic Review 86: 395400.

Jonathan Rodden and Erik Wibbels. 2010. “Fiscal Decentralization and the Business Cycle: An Empirical Study of Eight Federations.” Economics & Politics 22 (1): 3767.

David Roodman 2009. “How to do xtabond2: An Introduction to difference and system GMM in Stata.” The Stata Journal 9 (1): 86136.

Nouriel Roubini and Jeffrey D. Sachs, 1989. “Political and Economic Determinants of Budget Deficits in the Industrialized Democracies,” European Economic Review 33: 903–38.

Nouriel Roubini , Jeffrey D. Sachs, Seppo Honkapohja and Daniel Cohen. 1989. “Government Spending and Budget Deficits in the Industrial Democracies,Economic Policy 8: 100–32.

Takayuki Sakamoto . 2001. “Effects of Government Characteristics on Fiscal Deficits in 18 OECD Countries, 1961–1994.” Comparative Political Studies 34: 527–54.

Peter Saunders and Friedrich Klau. 1985. “The Role of the Public Sector: Causes and Consequences of the Growth of Government.” OEDC Economic Studies 4.

Wayne Simpson and Jared J. Wesley. 2012. “Effective Tool or Effectively Hollow? Balanced Budget Legislation in Western Canada.” Canadian Public Policy 38: 291313.

Bent E. Sørensen , Lisa Wu and Oved Yosha. 2001. “Output Fluctuations and Fiscal Policy: U.S. State and Local Governments 1978–1994.” European Economic Review 45: 12711310.

Stephen Tapp . 2013. “The Use and Effectiveness of Fiscal Rules in Canadian Provinces.” Canadian Public Policy 39 (1): 4570.

José Tavares . 2004. “Does Right or Left Matter? Cabinets, Credibility and Fiscal Adjustments.” Journal of Public Economics 88: 2447–68.

Geneviève Tellier . 2006. “Public Expenditures in Canadian Provinces: An Empirical Study of Politico-Economic Interactions.” Public Choice 126 (3/4): 367–85.

Frank Windmeijer . 2005. “A Finite Sample Correction for the Variance of Linear Efficient Two-Step GMM Estimators.” Journal of Econometrics 126: 2551.

Recommend this journal

Email your librarian or administrator to recommend adding this journal to your organisation's collection.

Canadian Journal of Political Science/Revue canadienne de science politique
  • ISSN: 0008-4239
  • EISSN: 1744-9324
  • URL: /core/journals/canadian-journal-of-political-science-revue-canadienne-de-science-politique
Please enter your name
Please enter a valid email address
Who would you like to send this to? *
×