189
Main determinants • political instability (chance of replace- ment of government) • polarization (ideological distance bet- ween subsequent governments) • number of parties in coalition • ideological distance between coalition members (lack of cohesion) • government form due to constitution (majority vote system versus propor- tional representation) • composition of parliament • left-wing governments are more prone to government spending and accept budget deficits • commitment to budgetary rules • position of spending ministers versus the finance minister • amendment power of parliament • budgetary process: top down versus bottom up; centralization versus de- centralization • budget transparency • direct versus indirect democracy • decentralized spending and transfers out of a central
budgetEvidence
originally relatively clear, but challenged lately relatively clear (contrasting evidence by Alesina and Roubini, 1992) mixed institutions are clearly important; direct democracy leads to lower debts relatively clear