Skip to main content

Economic Performance, Political Institutions and Cabinet Durability in 28 European Parliamentary Democracies, 1945–2011

  • Chapter
  • First Online:
Book cover Party Governance and Party Democracy

Abstract

After reviewing the literature on cabinet terminations and demonstrating the progress from early explanations based on the structural attributes of cabinets and their political environment to increasingly sophisticated ‘unified’ models of strategic responses to exogenous shocks, this chapter will (a) discuss ways of using existing datasets to operationalize one of these unified models, Lupia and Strøm’s influential model of strategic cabinet termination (focusing on the conditions of political institutions to influence the costs of governing under the impact of exogenous shocks such as economic crises); and (b) test a version of it empirically by using a competing-risk design and a new set of political and economic data covering 28 European democracies over a period of more than 60 years. It is found that strong increases in unemployment were particularly destructive for European cabinets, whereas the impact of inflation seems to be mitigated by political and strategic factors. Duration-dependent effects—unemployment increasing the risk of early elections towards the end of a parliamentary term and increasing the risk of non-electoral cabinet replacements at its beginning—are small but significant, corroborating some of the observable implications of the Lupia–Strøm model.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 84.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    Their empirical analyses in the same article, however, provide only limited support for this expectation. Single-party cabinets are terminated by early elections more frequently than multi-party cabinets, but the effect is not statistically significant at the five-percentage level (t = −1.3042).

  2. 2.

    Time-varying covariates measuring the data at least annually will be added to the dataset shortly.

  3. 3.

    The models reported here are not strictly comparable. The estimations in Tables 4.3, 4.4 and 4.5 are for the risk of all discretionary terminations (i.e. early elections as well as cabinet replacements) and based on a shared frailty design. Strictly comparable analyses (not reported here) lead to very similar results.

References

  • Alesina, A., & Rosenthal, H. (1995). Partisan politics, divided government, and the economy. Cambridge: Cambridge University Press.

    Book  Google Scholar 

  • Andersson, S., & Ersson, S.O. (2012). The European Representative Democracy Data Archive. Main sponsor: Riksbankens Jubileumsfond (In 2007–0149:1-E). Principal Investigator Torbjörn Bergman (www.erdda.se).

  • Armingeon, K., & Baccaro, L. (2012). The sorrows of young euro: The sovereign debt crises of Ireland and Southern Europe. In N. Bermeo & J. Pontusson (Eds.), Coping with crisis: Government reactions to the great recession (pp. 162–198). New York: Russell Sage Foundation.

    Google Scholar 

  • Bawn, K., & Rosenbluth, F. (2006). Short versus long coalitions: electoral accountability and the size of the public sector. American Journal of Political Science, 50(2), 251–265.

    Article  Google Scholar 

  • Bejar, S., Mukherjee, B., & Moore, W. H. (2011). Time horizons matter: the hazard rate of coalition governments and the size of government. Economics of Governance, 12(3), 201–235.

    Article  Google Scholar 

  • Bergman, T., Müller, W. C., & Strøm, K. (2005). Comparative parliamentary democracy: A project report. European Political Science, 4(1), 42–54.

    Article  Google Scholar 

  • Bernhard, W., & Leblang, D. (2006). Democratic processes and financial markets: Pricing politics. Cambridge: Cambridge University Press.

    Book  Google Scholar 

  • Diermeier, D. (2006). Coalition government. In B. R. Weingast & D. Wittman (Eds.), The Oxford handbook of political economy (pp. 162–179). Oxford: Oxford University Press.

    Google Scholar 

  • Diermeier, D., & Stevenson, R. T. (1999). Cabinet survival and competing risks. American Journal of Political Science, 43(4), 1051–1068.

    Article  Google Scholar 

  • Diermeier, D., & Stevenson, R. T. (2000). Cabinet terminations and critical events. American Political Science Review, 94(3), 627–640.

    Article  Google Scholar 

  • Diermeier, D., & Merlo, A. (2000). Government Turnover in Parliamentary Democracies. Journal of Economic Theory, 94(1), 46–79.

    Google Scholar 

  • Dodd, L. C. (1976). Coalitions in parliamentary government. Princeton: Princeton University Press.

    Google Scholar 

  • Duch, R. M., & Stevenson, R. T. (2008). The economic vote: How political institutions condition election results. Cambridge: Cambridge University Press.

    Book  Google Scholar 

  • Featherstone, K. (2011). The Greek sovereign debt crisis and EMU: A failing state in a skewed regime. Journal of Common Market Studies, 49(2), 193–217.

    Article  Google Scholar 

  • Franzese, R. J, Jr. (2002). Macroeconomic policies of developed democracies. Cambridge: Cambridge University Press.

    Book  Google Scholar 

  • Franzese, R.J. Jr. (2007). Fiscal policy with multiple policymakers: Veto actors and deadlock, collective action and common pools; bargaining and compromise. In Hideko Magara (Ed.), Veto players and policy change (pp. 118–161). Tokyo: Waseda University Press. (http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1084095).

  • Frendreis, J. P., Gleiber, D. W., & Browne, E. C. (1986). The study of cabinet dissolutions in parliamentary democracies. Legislative Studies Quarterly, 11(4), 619–628.

    Article  Google Scholar 

  • Grambsch, P. M., & Therneau, T. M. (1994). Proportional hazards tests and diagnostics based on weighted residuals. Biometrika, 81(3), 515–526.

    Article  Google Scholar 

  • Grofman, B. (1989). The comparative analysis of coalition formation and duration: Distinguishing between-country and within-county effects. British Journal of Political Science, 19(2), 291–302.

    Article  Google Scholar 

  • Grotz, F., & Weber, T. (2012). Government stability in Central and Eastern Europe. World Politics, 64(4), 699–740.

    Article  Google Scholar 

  • Hallerberg, M., & von Hagen, J. (1997). Electoral institutions, cabinet negotiations, and budget deficits in the European Union. NBER Working Paper 6341 (http://www.nber.org/papers/w6341.pdf).

  • Jäckle, S. (2011). Determinanten der Regierungsbeständigkeit in parlamentarischen Systemen. Münster: LIT Verlag.

    Google Scholar 

  • Kayser, M. A. (2005). Who surfs, who manipulates? The determinants of opportunistic election timing and electorally motivated economic intervention. American Political Science Review, 99(1), 17–27.

    Article  Google Scholar 

  • King, G., Alt, J. E., Burns N. E., & Laver, M. (1990). A Unified Model of Cabinet Dissolution in Parliamentary Democracies. American Journal of Political Science, 34(3), 846–71.

    Google Scholar 

  • Kontopolous, Y., & Perotti, R. (1999). Government fragmentation and fiscal policy outcomes: Evidence from OECD countries. In J. M. Poterba & J. von Hagen (Eds.), Fiscal institutions and fiscal performance (pp. 81–102). Chicago: University of Chicago Press.

    Google Scholar 

  • Laver, M. (2003). Government termination. Annual Review of Political Science, 6, 23–40.

    Article  Google Scholar 

  • Laver, M., & Shepsle, K. A. (1996). Making and breaking governments: Cabinets and legislatures in parliamentary democracies. Cambridge: Cambridge University Press.

    Book  Google Scholar 

  • Lijphart, A. (1999). Patterns of democracy: Government forms and performance in thirty-six countries. New Haven: Yale University Press.

    Google Scholar 

  • Linhart, E., & Pappi, F. U. (2009). Koalitionsbildungen zwischen Ämter- und Politikmotivation. Konstruktion einer interdependenten Nutzenfunktion. Politische Vierteljahresschrift, 50(1), 23–49.

    Article  Google Scholar 

  • Linz, J. J. (1990). The virtues of parliamentarism. Journal of Democracy, 1(4), 84–91.

    Article  Google Scholar 

  • Lupia, A., & Strøm, K. (1995). Coalition termination and the strategic timing of parliamentary elections. American Political Science Review, 89(3), 648–665.

    Article  Google Scholar 

  • Müller, W. C., & Meyer, T. (2011). Meeting the challenges of representation and accountability in multiparty governments. West European Politics, 33(5), 1065–1092.

    Article  Google Scholar 

  • Narud, H. M., & Valen, H. (2008). Coalition membership and electoral performance. In K. Strøm, W. C. Müller, & T. Bergman (Eds.), Cabinets and coalition bargaining: The democratic life cycle in Western Europe (pp. 369–402). Oxford: Oxford University Press.

    Google Scholar 

  • Riker, W. (1962). The theory of political coalitions. New Haven: Yale University Press.

    Google Scholar 

  • Robertson, J. D. (1983a). Inflation, unemployment, and government collapse: A Poisson application. Comparative Political Studies, 15(4), 425–444.

    Article  Google Scholar 

  • Robertson, J. D. (1983b). The political economy and the durability of European coalition cabinets: New variations on a game-theoretic perspective. Journal of Politics, 45(4), 932–957.

    Article  Google Scholar 

  • Saalfeld, T. (2008). Institutions, chance and choices: The dynamics of cabinet survival in the parliamentary democracies of Western Europe (1945–1999). In K. Strøm, W. C. Müller, & T. Bergman (Eds.), Cabinets and coalition bargaining: The democratic life cycle in Western Europe (pp. 327–368). Oxford: Oxford University Press.

    Google Scholar 

  • Saalfeld, T. (2010a). Coalition governance under Chancellor Merkel’s grand coalition: a comparison of the cabinets Merkel I and Merkel II. German Politics and Society, 28(3), 82–102.

    Article  Google Scholar 

  • Saalfeld, T. (2010b). Veto players, agenda control and cabinet stability in 17 European parliaments, 1945–1999. In T. König, G. Tsebelis, & M. Debus (Eds.), Reform processes and policy change: Veto players and decision-making in modern democracies (pp. 125–143). New York: Springer.

    Google Scholar 

  • Schleiter, P., & Morgan-Jones, E. (2009). Constitutional power and competing risks: monarchs, presidents, prime ministers, and the termination of East and West European cabinets. American Political Science Review, 103(3), 496–512.

    Article  Google Scholar 

  • Sened, I. (1996). A model of coalition formation: theory and evidence. Journal of Politics, 58(2), 350–372.

    Article  Google Scholar 

  • Shugart, M. S., & Carey, J. M. (1992). Presidents and assemblies: Constitutional design and electoral dynamics. Cambridge: Cambridge University Press.

    Book  Google Scholar 

  • Smith, A. (2003). Election timing in majoritarian parliaments. British Journal of Political Science, 33(3), 397–418.

    Article  Google Scholar 

  • Smith, A. (2004). Election Timing. Cambridge: Cambridge University Press.

    Google Scholar 

  • Strøm, K. (1988). Contribution to contending models of cabinet stability. American Political Science Review, 82(3), 923–941.

    Article  Google Scholar 

  • Strøm, K., & Swindle, S. M. (2002). Strategic parliamentary dissolution. American Political Science Review, 96(3), 575–591.

    Article  Google Scholar 

  • Tsebelis, G. (2002). Veto players: How political institutions work. New York: Rand Corporation/Princeton: Princeton University Press.

    Google Scholar 

  • Tsebelis, G., & Chang, E. C. C. (2004). Veto players and the structure of budgets in advanced industrialized countries. European Journal of Political Research, 43(3), 449–476.

    Article  Google Scholar 

  • Verzichelli, L. (2008). Portfolio allocation. In K. Strøm, W. C. Müller, & T. Bergman (Eds.), Cabinets and coalition bargaining: The democratic life cycle in Western Europe (pp. 237–268). Oxford: Oxford University Press.

    Google Scholar 

  • Warwick, P. V. (1994). Government survival in parliamentary democracies. Cambridge: Cambridge University Press.

    Google Scholar 

  • Warwick, P. V. (1999). Getting the assumptions right: a reply to Laver and Shepsle. British Journal of Political Science, 29(2), 402–412.

    Article  Google Scholar 

  • Zimmermann, E. (1987). Government stability in six European countries during the world economic crisis of the 1930s: Some preliminary considerations. European Journal of Political Research, 15(1), 23–52.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Thomas Saalfeld .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2013 Springer Science+Business Media New York

About this chapter

Cite this chapter

Saalfeld, T. (2013). Economic Performance, Political Institutions and Cabinet Durability in 28 European Parliamentary Democracies, 1945–2011. In: Müller, W., Narud, H. (eds) Party Governance and Party Democracy. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-6588-1_4

Download citation

Publish with us

Policies and ethics