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Does who governs matter? This paper explores the effect of government partisanship on social spending in advanced democracies. Moreover, this paper examines how the government partisanship effect manifests across the two distinctive political-economic regimes--Liberal Market Economies(LMEs) and Soci...

Does who governs matter? This paper explores the effect of government partisanship on social spending in advanced democracies. Moreover, this paper examines how the government partisanship effect manifests across the two distinctive political-economic regimes--Liberal Market Economies(LMEs) and Social Market Economies(SMEs). The Varieties-of-Capitalism approach suggests that the issue of social spending is likely to be more politically contentious in LMEs than in SMEs. It follows that the government partisanship effect is likely to be more pronounced in LMEs than in SMEs. Using the panel data of 17 OECD countries for the period 1962-98, my analysis finds that the government partisanship effect is transitory rather than enduring. In LMEs Left government exerts a transitory effect on increases in social spending, while Right government leads to a transitory cutback effect on social spending in SMEs.

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