PubAg

Main content area

Political extremism and economic activity

Author:
Rao, Matthew, Raschky, Paul A., Tombazos, Christis G.
Source:
Economics letters 2018 v.170 pp. 59-62
ISSN:
0165-1765
Subject:
models, per-capita income, politics, risk, Europe
Abstract:
We study the effect of economic activity on the vote share of extremist political parties in Europe. Using a model that addresses the prevalent endogeneity problem, which is likely to have discouraged similar research, we find that small fluctuations in income per-capita have significant inverse effects on the vote share of far-right parties. Our results explain the widespread success of such parties in entering European parliaments following the 2007–2008 crisis. They also suggest that, ceteris paribus, far-right parties on the margin of electoral thresholds run the risk of losing parliamentary representation in the face of a steadily recovering world economy.
Agid:
5972076