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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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