The impact of voter initiatives on economic activity

Abstract

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The influence of direct democracy on the shadow economy

“…Matsusaka (1995Matsusaka ( , 2005 and Blume et al (2009) obtain similar results using U.S. and cross-country data, respectively. Alt and Lassen (2003), Pommerehne (1990), and Blomberg et al (2004) find results suggesting that direct democratic institutions reduce rent extraction and improve the efficiency of public good provision.…”

Positive constitutional economics II—a survey of recent developments

“…Some of the cost effectiveness is lost when waste collection is provided by the town itself and additional efficiency losses materialize if waste collection is provided in towns without direct democratic elements. Blomberg et al (2004) Finally, do direct democratic institutions have any discernible effect on productivity and thus on per capita income? Feld and Savioz (1997) find that per capita GDP in cantons with extended democracy rights is some 5 percent higher than in cantons without such rights.…”

Direct Democracy and Local Government Efficiency

“…Feld and Savioz (1997) demonstrate greater total factor productivity in Swiss Cantons with more direct democracy, which then translates into higher output. Blomberg et al (2004) find that American States with the initiative legislation host more productive workers and have higher (both private and public) capital to labor ratios. Blume et al (2009) study the economic effects of direct democracy in a crosscountry setting, where next to common indicators such as output or spending, aggregated indices of government quality such as (broadly defined) effectiveness, corruption, tax morale etc., are also employed.…”