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Article
Government Ideology, Democracy and the Sacrifice Ratio: Evidence from Latin American and Caribbean Disinflations
The Open Economics Journal
  • Tony Caporale, University of Dayton
Document Type
Article
Publication Date
9-1-2011
Abstract
This study uses a sample of 34 disinflations undertaken by thirteen Latin American and Caribbean (LAC) nations to test if political institutions impact the cost of policy induced disinflations. We find, after controlling for several of the most important covariates in the literature, that disinflations are less costly for right vs. left governments and that sacrifice ratios are lower for more democratic vs. authoritarian governmental regimes. This is robust to different measures of government ideology as well as to alternative ways of computing the sacrifice ratio and lends support for political economy literature which argues that political institutions have significant macroeconomic effects.
Inclusive pages
39-43
ISBN/ISSN
1874-9194
Document Version
Published Version
Comments

Permission documentation is on file.

Publisher
Bentham Science Publishers
Place of Publication
Oak Park, IL
Peer Reviewed
Yes
Keywords
  • Sacrifice ratio,
  • disinflation,
  • political regimes
Citation Information
Tony Caporale. "Government Ideology, Democracy and the Sacrifice Ratio: Evidence from Latin American and Caribbean Disinflations" The Open Economics Journal Vol. 4 (2011)
Available at: http://works.bepress.com/tony_caporale/10/