Effects Of Direct Democracy Research Articles

Does direct democracy increase civic virtues? A systematic literature review

Due to widespread citizen disenchantment with representative democracy, the introduction of direct-democratic institutions is often promoted as a promising remedy to overcome the current democratic crisis. Theorists of participatory democracy have argued that direct democracy can foster civic virtues, given that the opportunity to participate in referendums and initiatives is generally expected to empower and enlighten citizens. By conducting a systematic literature review, this article aims to provide an overview of scholarship on how direct democracy delivers on its promise to increase individual civic virtues. To that end, it focuses on the effects of direct democracy on those four areas to which scholars have devoted much attention so far: (1) electoral turnout, (2) external and internal efficacy, (3) political knowledge, and (4) subjective wellbeing and satisfaction with democracy. Based on 67 selected studies, it turns out that there is only little positive overall effect of direct democracy on civic virtues, with a great deal of variation. The empirical analysis establishes a negative time trend, indicating that researchers have increasingly reported negative findings over the years. This main result calls into question the expectations advanced by the theorists of participatory democracy and gives some credit to more skeptical views. This review concludes by providing scholars with new avenues for research.

The Effects of Direct Democracy on Stock Market Risk and Returns: An Event Study from Switzerland

The aim of this study was to determine whether referendums affect stock price risks and returns, using an event study approach. Daily end period data for the Swiss stock market index, the STOXX European market index, and the Swiss/US exchange rate running from the beginning of 2004 to June 2021, along with the EGARCH model, were applied to determine the effects on both the market’s return and volatility. The results suggest that the day after the referendum, there was little evidence of a positive effect on stock returns. However, using a longer window of three days before and after the referendum, there was evidence of a positive effect from the referendum on the market’s returns and a negative effect on its volatility. Analysing the effects of referendums on both asset returns and risks allows for a more comprehensive assessment of how they impact on the economy, with these results supporting previous studies that found a positive effect on economic returns, and also showing they can reduce risks.

Direct democracy and equality: A global perspective

Direct democracy is seen as a potential cure to the malaise of representative democracy. It is increasingly used worldwide. However, research on the effects of direct democracy on important indicators like socio-economic, legal, and political equality is scarce, and mainly limited to Europe and the US. The global perspective is missing. This article starts to close this gap. It presents descriptive findings on direct democratic votes at the national level in the (partly) free countries of the Global South and Oceania between 1990 and 2015. It performs the first comparative analysis of direct democracy on these continents. Contradicting concerns that direct democracy may be a threat to equality, we found more bills aimed at increasing equality. Likewise, these votes produced more pro- than contra-equality outputs. This held for all continents as well as for all dimensions of equality.

The integrative force of political institutions? Direct democracy and voter turnout across ethnic and nativity groups

Much has been written on the positive effect of direct democracy (initiatives, referendums) on voter turnout. However, we have limited knowledge about potential differential effects on voters belonging to various ethnic groups. The paper argues that depending on a group’s responsiveness to the political context, direct democracy can (dis-)integrate voters (from) into the electorate. Empirical analysis of Current Population Survey (CPS) voting supplement survey data, together with data on the absolute use of direct democracy across US states, corroborates this theoretical expectation, however lending more support for the disintegrating assumption. Frequent direct democratic elections further widen the negative voting gap between first-generation Asian voters and voters living in the US for three generations or longer, whereas they tend to diminish this voting gap for first-generation Hispanic voters. The disintegrative pattern for first-generation Asian voters remains even significant when excluding California from the state sample, yet not the integrative tendency for first-generation Hispanics. Additional analyses using alternative measures of direct democracy and voting, and applying statistical adjustments to address causality concerns, confirm the robustness of these findings, which shed light on the so-far underexplored (dis-)integrative potential of political institutions.

The referendum as an institution in the Black Sea Region: Does it signal the rise or collapse of democracy?

Views on the institution of direct democracy have changed during the period of democratic transition. The various advantages and positive effects of direct democracy have been confirmed by the practice of some democratic countries. Its educational and political activation value for society was also noted, without which civil society cannot form. The referendum is especially treated as the purest form of correlation between the views of society and the decisions of its representatives. In a situation where two representative bodies are present – the parliament and the president – a referendum is considered a means of resolving disputes between them in important state affairs. The referendum is nowadays becoming more than just a binding or consultative opinion on a legislative act, especially a constitution. First and foremost, it is important to see the extension of the type and scope of issues that are subject to direct voting. Apart from the traditional, i.e., constitutional changes, polarising issues that raise considerable emotion have become the subject of referenda. Problems of this type include, in particular, moral issues, membership in international organisations, and so-called ‘New Policy’. This article presents the role and importance of the referendum as an institution shaping the democratic systems of the Black Sea Region.

The input and output effects of direct democracy: a new research agenda

Based on a wide-ranging review of the existing literature, this article provides an original, state-of-the-art analysis of the field of direct democracy. Distinguishing between the ‘input’ and ‘output’ effects of direct democracy, the article identifies the main empirical insights and normative arguments regarding voter competence, turnout, the influence of special interests, agenda setting and policy change. At the same time, the article draws attention to a number of hitherto understudied issues, and makes a series of theoretical, methodological and empirical recommendations to advance the field of study. In particular, it argues that insufficient attention has been given to the link between direct democracy and policy implementation. Finally, and most ambitiously, the paper calls for a radical new theory of direct democratic voting behaviour that draws upon insights developed in the field of electoral studies to explain why voters choose a ballot proposal in direct democratic votes.

Income tax schedule and redistribution in direct democracies – the Swiss case

This study examines redistribution policy through personal income taxes in Swiss cantons over the period 1995–2011. In a first step, redistribution measures are estimated with the help of exhaustive administrative data. Redistribution is decomposed into average tax rate and tax progression. In a second step, we investigate the impact of direct democratic institutions and their usage on tax policy and redistribution. The results suggest that the effect of direct democracy on income tax redistribution is a multilayered process. First, the theoretical availability of direct democracy tools does not seem to have the same impact as the effective use of them. Second, fiscal referendums may – in the short term –reduce redistribution through lower tax rates and lead to less tax progression. Third, an increasing number of ballots on initiatives leads to more tax progression and more redistribution in the long run. It seems that the short-term dampening effects of fiscal referendums on redistribution may be overridden in the long run by the expansive effect of popular initiatives.

Direct-Democracy Rules: The Effect of Direct Democracy on State Immigration Legislation

Direct-Democracy Rules: The Effect of Direct Democracy on State Immigration Legislation

The effect of direct democracy on the social stratification of political participation: Inequality in democratic fatigue?

The literature on participatory democracy suggests that citizens’ direct democratic involvement will be associated with higher levels of democratic legitimacy. Simultaneously, however, it has been pointed out that a repeated reliance on direct democracy procedures might lead to democratic fatigue among citizens, and it might even lead to a ‘participation paradox’, as a proliferation of forms of participation in practice leads to more inequality. In this paper, we investigate to what extent direct democracy indeed has an effect on participation levels. Only for voting, we find that direct democracy has a direct dampening effect. Also, for non-institutionalized forms of political participation, we find that citizens with a low socio-economic status are even less likely to participate when they live in a country where direct democratic instruments are extensively available. We close with some observations on what effect direct democracy might have on the overall functioning of representative democracy.

Does direct democracy increase communicative responsiveness? A field experiment with Swiss politicians

Many argue that direct democracy improves the quality of democracy. In particular, many scholars claim that it increases the representation of the public’s preferences by fostering communicative responsiveness between politicians and citizens. While studies have come to mixed conclusions about the effect of direct democracy on policy outcomes, little is known about how direct democratic processes affect politicians’ responsiveness. Using a field experiment, this study examines whether direct democracy increases the responsiveness of Swiss state legislators to citizen-initiated contacts on policy concerns. Contrary to popular belief, our results show that direct democracy does not enhance politicians’ responsiveness to policy requests.

Zero-Sum Democracy? The Effects of Direct Democracy on Representative Participation

Direct democracy has received increasing attention in the past decades, from both the academic and political spheres. Moreover, institutions of direct democracy have also been introduced more frequently throughout the world, often with the aim of improving the democratic process. However, the impact of direct democracy on the behaviour of the citizenry in representative democracy is not yet clear. This study therefore focuses on the relationship between the institutions of direct democracy and turnout in representative elections. I expect that when institutions of direct democracy fulfil a task that is traditionally part of representative democracy, electoral participation declines (zero-sum proposition). Conversely, institutions where citizens are free to add new issues to the political arena (initiatives) would positively affect turnout (positive-sum proposition). I test my argument for a panel of democracies between 1980 and 2005, and find that some institutions of direct democracy compete with representative democracy while others complement it.

(Re‐)join the party! The effects of direct democracy on party membership in Europe

AbstractIt has been argued that political parties are in decline. While they used to be responsible for connecting citizens to the state by translating their preferences into policies, they have increasingly become part of the state, acting as governors instead. While this perspective emphasises parties’ representative function, it is less clear what their role is in a more direct democratic context. Parties may gain support due to such context, but they may also be seen increasingly redundant in a situation where citizens can co‐decide directly. Focusing on party membership, this study tests these rival expectations on a panel of 16 West European democracies over the period 1980–2008 and finds that parties tend to have higher levels of party membership in a direct democratic context. The usage of referendums, however, does not contribute to this effect.

Institutional details matter—more economic effects of direct democracy

This study contains further evidence on the economic effects of direct democratic institutions. A first study found that countries with national initiatives have higher government expenditure and are characterized by more rent-seeking activity, that the effects of direct democratic institutions become stronger if the frequency of their actual use is taken into account, and that effects are stronger in countries with weak democracies. This study sheds more light on these findings by drawing on a new dataset covering more countries and incorporating more institutional detail. The results of the earlier study are largely confirmed: mandatory referendums lower government expenditure and improve government efficiency, initiatives have the opposite effects. The incorporation of more institutional detail into the analysis shows that the increase in government expenditures connected with initiatives is primarily driven by citizen, as opposed to agenda, initiatives. Further, referendums held at both the constitutional and post-constitutional levels are correlated with larger debt. Finally, neither the possibility of a recall nor the degree to which referendum results are binding significantly affect our dependent variables.

Bypassing the Representational Filter? Minority Rights Policies under Direct Democracy Institutions in the U.S. States

AbstractOne common critique of direct democracy posits that minority rights are endangered by institutions like ballot initiatives and referenda. Empirical research testing this claim, however, has produced conflicting results that leave the question of direct democracy's effect on minority rights open to debate. This study extends previous research by providing a more direct test of this criticism—it compares anti-minority policy proposals from direct democracy states to similar proposals from states without direct democracy institutions. The author examines both ballot proposals and traditional legislative bills to account for both the direct and indirect effects of direct democracy. Analyzing anti-minority proposals from all 50 states from 1995 to 2004 shows that direct democracy states are more likely to pass these proposals than states without direct democracy institutions.

The Regressive Effects of Direct Democracy: Evidence from Property Tax Assessors

What effect does increasing opportunities for participation have on policy outcomes? While formal models predict progressivity (Acemoglu and Robinson 2006; Besley and Coate 2003), empirically, there are large biases in who actually participates in politics (Verba, Schlozman and Brady 1995). Exploiting a New York law requiring the appointment of tax assessors in towns with over 10,000 residents, I show that a particular form of direct democracy – the direct election of tax assessors – makes local tax policy more regressive.

The Contradictory Effects of Consensus Democracy on the Size of Government: Evidence from the Swiss Cantons

In this research note we have set ourselves the following three principal objectives. First, we show that the well-known concept of consensus democracy, which covers various forms of the division of power, involves analytical problems. Confusion may arise when relating consensus democracy to government action, because the institutions subsumed under the broad concept of consensus democracy, such as executive power-sharing, the multiparty system and federalism, are likely to have different and contradictory effects on the size of government. In this vein, we provide considerable evidence that different aspects of consensus democracy have contradictory effects on government size. In doing so, we endorse the view that it is only variance in the type of democracy (majoritarian versus consensus democracy) that causes systematic differences in government action. Secondly, in scrutinizing the contradictory effects of various aspects of consensus democracy on government size, we distinguish and operationalize the three different analytical views of Crepaz, Lijphart and Tsebelis on how political institutions may be distinguished with regard to their veto nature. Thirdly, we try to close a gap in understanding comparative politics, by quantifying and comparing the veto potential of direct democracy. International comparative investigations of the effects of direct democracy on public policy are hardly possible. The Swiss cantons present themselves as a suitable alternative source of evidence, given that they vary considerably with respect to their plebiscitary elements.To understand why consensus democracies have a contradictory effect on government size, it is crucial to bear in mind that there are two separate dimensions of the majoritarian–consensual contrast.

Educated by Initiative: The Effects of Direct Democracy on Citizens and Political Organizations in the American StatesEducated by Initiative: The Effects of Direct Democracy on Citizens and Political Organizations in the American States. By Daniel A. Smith and Caroline J. Tolbert. (University of Michigan Press, 2004.)

Educated by Initiative: The Effects of Direct Democracy on Citizens and Political Organizations in the American States<i>Educated by Initiative: The Effects of Direct Democracy on Citizens and Political Organizations in the American States</i>. By Daniel A. Smith and Caroline J. Tolbert. (University of Michigan Press, 2004.)

Warum die Direkte Demokratie den Anstieg der Staatsausgaben in der Schweiz nicht verhindern konnte

Abstract Switzerland experienced a strong increase in government spending during the 1990’s. The immediate reasons are well-known: higher expenditure for the elderly and other areas of social security as well as higher expenditure for health care make up most of the increase. The political reasons are not that clear, however. A by now large literature argues that direct democracy in Switzerland reduces government spending at the level of cantons and municipalities. First, the theoretical and empirical basis for this claim is critically reviewed. Second, it is found that the variation of direct democracy between cantons had no effect on the growth of government spending during the 1990’s. Third, the effect of direct democracy on the level of spending is not negative in all specifications and was decreasing during the 1990’s.

THE INTERACTION BETWEEN DIRECT AND REPRESENTATIVE DEMOCRACY IN SWITZERLAND

Theoretical debates about direct and representative democracy tend to be based on unrealistic assumptions about how direct democracy – and sometimes how representative democracy – works. This article explores the interaction between direct and representative democracy in Switzerland, where direct democracy is an essential part of everyday politics. We show that the key actors of the representative system – governments, parliaments and parties – play a central role in the direct democratic process too. Political actors adapt to the direct democratic challenge and manage to control the direct democratic process to a great extent. Looking at the possible effects of direct democracy on the representative system, we show that direct democracy does not necessarily weaken parties; direct democracy in combination with the relative strength of the different parties is responsible for the oversized coalition government that exists in Switzerland since 1959 and that policy‐making becomes less predictable for the political elites. However there are arguments that single policies tend to be more in favour of the median voter than in a pure representative system.

The Effect of Direct Democracy on Income Redistribution: Evidence for Switzerland

There is an intensive dispute in political economics about the impact of institutions on income redistribution. While the main focus is on comparison between different forms of representative democracy, the influence of direct democracy on redistribution has attracted much less attention. According to theoretical arguments and previous empirical results, government policies of income redistribution are expected to be more in line with median voter preferences in direct than in representative democracies. In this paper, we find that institutions of direct democracy are associated with lower public spending and revenue, particularly lower welfare spending and broad-based income and property (wealth) tax revenue. Moreover, we estimate a model which explains the determinants of redistribution using panel data provided by the Swiss Federal Tax Office from 1981 to 1997 and a cross section of (representative) individual data from 1992. While our results indicate that less public funds are used to redistribute income and actual redistribution is lower, inequality is not reduced to a lesser extent in direct than in representative democracies for a given initial income distribution. This finding might well indicate the presence of efficiency gains in redistribution policies.