ABSTRACT
This chapter uses the Worldwide Governance Indicators (WGIs) for 2007 to operationalize country governance. The chapter explains measure of party system Viscosity to operationalize stability in generating hypotheses H4.1 through H4.6. Pedersen's original volatility formula calculated the percentage-point differences in votes cast for all parties in two adjacent elections. As measured by Viscosity, party system stability has significant and approximately equal effects on every indicator except Regulatory Quality. Better Regulatory Quality in country governance appears to be driven by country wealth, not country size or party system stability, at least in electoral democracies. In keeping with the standard view, Robbins contends that party system volatility corresponds negatively with public goods spending levels, presumably an ingredient of governance. Also, once the analysis is restricted to only electoral democracies, NPPlog has no effect on any governance indicator except Political Stability.
