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Are certain forms of government associated with superior economic outcomes? This paper attempts to answer that question by examining how government systems influence macroeconomic performance. We find that presidential regimes consistently are associated with less favorable outcomes than parliamentary regimes: slower output growth, higher and more volatile inflation and greater income inequality. Moreover, the magnitude of the effect is sizable. For example, annual output growth is between 0.6 and 1.2 percentage points lower and inflation is estimated to be at least four percentage points higher under presidential regimes relative to those under parliamentary ones. The difference in distributional outcomes is even starker; income inequality is 12 to 24% worse under presidential systems. [ABSTRACT FROM AUTHOR]

This paper uses U.S. city-level data on five public expenditure categories to test empirically whether the form of local government affects the amount of public good provision. This also serves as an empirical test of a theory of national politics that predicts higher provision of public good in parliamentary than in presidential regimes. The robust results indicate that: at the city level, the mayor-council form of government provides significantly more public good than the council-manager form of government for two of the public expenditure categories; and, at the national level, presidential regimes provide more public good than do parliamentary regimes. [ABSTRACT FROM AUTHOR]

Persson and Tabellini (The Economic Effects of Constitutions, The MIT Press, Cambridge, ) show that presidential regimes and majoritarian election systems have important economic effects. Here, the number of countries is expanded and more recent data is used. In replicating and extending their analyses, we find that the effect of presidential regimes vanishes almost entirely. With regard to electoral systems, the original results are largely confirmed: majoritarian (as opposed to proportional) electoral systems lead to lower government expenditure, lower levels of rent seeking but also lower output per worker. The institutional details, such as the proportion of candidates that are not elected on party lists and district size, are particularly important. [ABSTRACT FROM AUTHOR]