Abstract |
Although cited as an important source of support for capitalism and laissez faire, the effect of economic individualism, which embraces the values of self-reliance, individual autonomy and freedom on government spending, has yet to be addressed. Hence, using data from the World Values Survey and Persson and Tabellini‘s Economic Effects of Constitutions datasets, I show that more individualist nations are associated with lower government spending and that the effect of economic individualism is stronger in countries with majoritarian elections and presidential systems. The results also show that institutions do not exert a uniform influence on government size, with most spending taking place under majoritarian elections and presidential systems in the most collectivist countries. |