Presidential regimes produce more discretionary fiscal policy than parliamentary ones

Evidence

Results by Persson and Tabellini (2001) and Fatas and Mihov (2002) suggest that fiscal policy in presidential regimes has a more top-bottom discretionary nature than in parliamentary regimes, suggesting that in presidential regimes policy is less constrained by various veto points in the process. — Philippe Aghion, Alberto Alesina, and Francesco Trebbi, Endogenous Political Institutions, 166

Categorization

• XREF: Links to the fiscal-policy volatility literature (Fatas & Mihov) and to broader constitutional political economy.