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29 Comp. Pol. Stud. 4 (1996)

handle is hein.journals/compls29 and id is 1 raw text is: This article argues that consensual political institutions as operationalized by Lijphart and Crepaz (1991) have significantly favorable effects on unemployment, inflation, and the number of working days lost, whereas economic growth remains unaffected. Although this finding is consistent with Olson's theoretical concept of encompassing organizations, this study shows that Olson's empirical operationalization is flawed. Strong, two-party Westminster systems, based on single-member district electoral rules, and single-party, bare majority cabinets do not perform as well as weak, multiparty coalition governments with proportional representation as an electoral rule. An empirical measure of encompassing organizations is introduced, termed popular cabinet support. A cross-sectional/time-series panel study of 162 elections (18 countries and 9 elections per country, N = 162) provides strong evidence that governments with consensual, inclusive, and accommodative constitutional structures and wider popular cabinet support behave more responsibly than do their more majoritarian, exclusionary, and adversar- ial counterparts. CONSENSUS VERSUS MAJORITARIAN DEMOCRACY Political Institutions and Their Impact on Macroeconomic Performance and Industrial Disputes MARKUS M. L. CREPAZ University of Georgia T he purpose of this article is to answer the following question: Can variations in policy outcomes be systematically linked to formal politi- cal institutions? First, after reviewing some of the pertinent literature, I will compare and contrast Lijphart and Crepaz's (1991) concept of consensus democracy with Olson's (1982) concept of encompassing organizations. Second, I will introduce an empirical measure for encompassing organiza- tions and create an empirical model of the impact of formal constitutional structures on macroeconomic outcomes and industrial disputes. Third, this COMPARATIVE POLITICAL STUDIES, Vol. 29 No. 1, February 1996 4-26 @ 1996 Sage Publications, Inc 4 from the SAGE Social Science Collections. All Rights Reserved.

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