TY - JOUR AU - Persson,Torsten AU - Roland,Gerard AU - Tabellini,Guido TI - How Do Electoral Rules Shape Party Structures, Government Coalitions, and Economic Policies? JF - National Bureau of Economic Research Working Paper Series VL - No. 10176 PY - 2003 Y2 - December 2003 UR - http://www.nber.org/papers/w10176 L1 - http://www.nber.org/papers/w10176.pdf N1 - Author contact info: Torsten Persson Torsten and Ragnar Soderberg Chair in Economic Sci Institute for International Economic Studies Stockholm University SE-106 91 Stockholm SWEDEN Tel: +46 8 163066 Fax: +46 8 6747801 E-Mail: Torsten.Persson@iies.su.se Gerard Roland UC Berkeley Department of Economics 627 Evans Hall #3880 Berkeley, CA 94720-3880 Tel: 510-642-4321 Fax: 510-642-6615 E-Mail: groland@econ.berkeley.edu Guido Tabellini IGIER Universita' Bocconi Via Roentgen 1 20136 Milano Italy Tel: 39 2 583 6 3305; fax 3302 E-Mail: guido.tabellini@unibocconi.it AB - We present a theoretical model of a parliamentary democracy, where party structures, government coalitions and fiscal policies are endogenously determined. The model predicts that, relative to proportional elections, majoritarian elections reduce government spending because they reduce party fragmentation and, therefore, the incidence of coalition governments. Party fragmentation can persist under majoritarian rule if party supporters are unevenly distributed across electoral districts. Economic and political data, from up to 50 post-war parliamentary democracies, strongly support our joint predictions from the electoral rule, to the party system, to the type of government, and to government spending. ER -