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27 Const. Pol. Econ. 1 (2016)

handle is hein.journals/constpe27 and id is 1 raw text is: Const Polit Econ (2016) 27:1-40 DOI 10.1007/s10602-015-9198-y CrossMuk > I i A I I I '. State provision of constitutional goods Romain Espinosa' Published online: 23 July 2015 © Springer Science+Business Media New York 2015 Abstract This paper investigates the impact of constitutional rights on the level of public expenditure in a large sample of countries. To do so, we construct a panel of 73 countries from 1960 to 2011. We first investigate factors that drive constitutional changes regarding constitutional rights. To address potential endogeneity concerns in the choice of constitutional rules, we rely on an instrumental variable within estimation (country and time fixed effects) to estimate the impact of constitutional rights on government size. We find that larger governments tend to inscribe fewer rights in their constitutions, but we do not detect any impact of constitutional rights on the government size. Keywords Constitutional rights - Constitutional economics - Government expenditure - Government size - Endogenous constitutions JEL E60- H50 - K10 1 Introduction Recent developments in the Constitutional Political Economy literature have studied the relationship between constitutional rules and state behavior. These works aimed to assess the impact of constitutional provisions on economic outcomes. So far, two sets of constitutional rules have received most of the attention, i.e., rules defining de jure judicial independence (Feld and Voigt 2003; Hayo and Voigt 2007, 2013; ® Romain Espinosa romain.espinosa@u-paris2.fr CRED (TEPP), Universit6 Paris II Panth6on-Assas, 12 Place du Panth6on, 75005 Paris, France I_ Springer

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