ABSTRACT
The previous chapter presents findings concerning the influence of governmental institutions on expenditure patterns and public sector employment trends. These findings indicate that more inclusive, consensusbased democratic political systems have higher levels of total outlays, social spending (particularly as a percentage of total expenditures), and changes in public sector employment than less inclusive, majoritarian systems. In addition, the work of Roubini and Sachs (1989) and Borrelli and Royed (1995) indicates that inclusive political systems run higher deficits in difficult economic times.
