Working Paper: CEPR ID: DP7723
Authors: Markus Brckner; Hans Peter Grüner
Abstract: In many western democracies, political parties with extreme platforms challenge more moderate incumbents. This paper analyses the impact of economic growth on the support for extreme political platforms. We provide a theoretical argument in favor of growth effects (as opposed to level effects) on the support for extremist parties and we empirically investigate the relationship between growth and extremist votes. A lower growth rate increases the support for extreme political platforms but our estimates also indicate that extreme platforms are unlikely to gain majorities in OECD countries, unless there is an extreme drop in the GDP per capita growth rate.
Keywords: Economic Growth; Political Regimes
JEL Codes: O40; O52
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Economic inequality (D31) | Increased support for redistribution (D39) |
| Lower growth rate (O41) | Increased support for moderate political regimes (P16) |
| Lower growth rate (O41) | Increased support for extreme political platforms (D72) |