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National Local Political Economies and Varieties of Capitalism: A Classification and Analysis of 21 Developed Democracies
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Abstract
The comparative study of political economy in developed countries, in focusing on institutions of production and policy at the national scale, has neglected important cross-national contrasts in the institutions of local political economies. This article, drawing on the seminal Tiebout model of local public goods provision, presents a systematic scale for classification of local governments and markets among localities as elements in policymaking and markets for twenty-one OECD countries. Rather than simply follow variations in federalism and decentralization at higher echelons of states, cross-national variations in this index correspond strongly to national systems of capitalist institutions as well as to varying degrees with patterns of interest intermediation, welfare states and party systems. Accumulating evidence from local studies points to these national local political economies as causes of divergences in policymaking and performance that have generally been attributed to other national institutions.
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| | Authors: Sellers, Jefferey. |
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Abstract
The comparative study of political economy in developed countries, in focusing on institutions of
production and policy at the national scale, has neglected important cross-national contrasts in
the institutions of local political economies. This article, drawing on the seminal Tiebout model
of local public goods provision, presents a systematic scale for classification of local
governments and markets among localities as elements in policymaking and markets for twenty-
one OECD countries. Rather than simply follow variations in federalism and decentralization at
higher echelons of states, cross-national variations in this index correspond strongly to national
systems of capitalist institutions as well as to varying degrees with patterns of interest
intermediation, welfare states and party systems. Accumulating evidence from local studies
points to these national local political economies as causes of divergences in policymaking and
performance that have generally been attributed to other national institutions.
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