Affiliation:
1. Walter Eucken Institut
2. University of Freiburg
3. University of Siegen
Abstract
Abstract
We test whether the proactive use of instruments of direct democracy by voters can help to explain fiscal sustainability of 25 Swiss cantons. Using data of all cantonal popular votes since 1977, our results show that the fiscal reaction of cantonal governments to an increase in the debt to GDP ratio of a canton is stronger, the more cantonal voters actively made use of their direct democratic rights in the previous year.
JEL Codes: H11 H50 D72
Publisher
Research Square Platform LLC
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