Stephanie J. Rickard
Policies as diverse as tariffs, exchange rates, and unemployment insurance vary across democratic countries. In an attempt to explain this cross-national variation, scholars have turned to the institutions that govern countries’ elections. The institutions that regulate elections, also known as an electoral system, vary significantly across democracies. Can these varied electoral institutions explain the diversity of policies observed? This question remains unanswered. Despite a growing body of research, little consensus exists as to precisely how electoral institutions affect policy. Why is it so difficult to untangle the effects of electoral institutions on economic policy? One reason for the confusion may be the imprecise manner in which electoral institutions are often measured. Better measures of electoral systems may improve our understanding of their policy effects. Improved theories that clarify the causal mechanism(s) linking electoral systems to policy outcomes will also help to clarify the relationship between electoral systems and policies. To better understand the policy effects of electoral institutions, both theoretical and empirical work must take seriously contextual factors, such as geography, which likely mediate the effects of electoral institutions. Finally, different types of empirical evidence are needed to shed new light on the policy effects of electoral institutions. It is difficult to identify the effects of electoral systems in cross-national studies because of the many other factors that vary across countries. Examining within-country variations, such as changes in district magnitude, may provide useful new insights regarding the effects of electoral institutions on policy.
All governments require revenue, and domestic taxes are the primary means for generating it. Yet both the size and shape of taxation vary significantly across countries and have been transformed over time. What explains variation in domestic taxation? To answer this question, recent scholarship on taxation has focused on the politics of taxation as a tool for redistribution. This has led to a wide body of research on the fiscal impact of taxation and on the introduction, evolution, and variation in direct and progressive tax regimes, particularly the income tax. Yet the focus on taxation as a redistributive tool yields a puzzle, as more progressive tax systems tend to be found where redistribution is in fact the lowest. Explanations of this paradox often center on the impossibility of high and progressive taxes on capital in the context of international economic integration. Not as well studied are taxes other than the taxation of income, and the deliberate politics of nonfiscal, regulatory, and incentive effects of different tax choices. Methodologically, problems of endogeneity are ubiquitous in the study of tax policy choices, but more sophisticated experimental work is well underway in research on individual preferences for taxation.
The surge in the appointments of technocrats to the top economic portfolios of finance since the 2009 Great Recession, and even the formation of fully technocratic governments in Europe, raises questions regarding the role of technocrats and technocratic governments in economic policy in democracies. Who are the technocrats? Why are they appointed in the first place? What is their impact on economic policy, and finally what are their sources of policy influence?
Surprisingly, we know little about the role of technocrats in economic policy despite their prominent presence in Eastern Europe since the early 90s and in Latin America since the early 80s. Technocrats were behind major market-conforming reforms in Latin America with lasting economic and political effects in the region. Technocrats we also appointed in many former Eastern European countries to reform the system of production and the labor market. Yet, to this day, we have little systematic knowledge and even less cross-regional comparative work on the policy effects of technocratic appointments.
Moreover, the term “technocrat” itself does have a shared meaning and is not uniformly used by scholars across the European and American continents, further inhibiting the study of technocrat policymakers. This article seeks to advance the study of technocratic government by providing a clear definition of a technocrat and of technocracy more generally; by reviewing the extant literature on the role of technocrats in economic policy with a special focus on the sources of their policy influence and finally by proposing a theoretical framework for understanding the role of technocrats as policymakers.