First, the problem of defining the government size and theoretical considerations about the relation between this size and economic growth are discussed. Then the international comparative empirical literature as well as the one discussing the Swiss situation are reviewed. Neither of them comes to firm conclusions. One reason for this is that in international cross-section as well as panel analyses the simultaneity problem is extremely tricky. Moreover, these papers do not take into account institutional differences between the countries. On the other hand, studies which look at the federal unit within one national state and, therefore, avoid the latter problem, are faced with an even more serious simultaneity problem.
Abschnitt 4.1 des Jahresberichts 2004 der Kommission für Konjunkturfragen
Beilage zur Volkswirtschaft, dem Magazin für Wirtschaftspolitik, 1-2004, S. 42-48
In this paper several problems of direct popular decisions are discussed. In the first part, we consider problems related to the functioning of direct democracy. It makes only sense as a political system if it is a continuous process and if not only sometimes single questions are brought to a referendum. Then, the relation between direct democracy and the unanimous rule is discussed, a subject of special relevance ro the European Union, before we consider the role of quorums. In the second part, some areas are considered where conflicts might arise. The results of initiatives might be incompatible with individual human rights or might endanger fiscal sustainability, and referenda might impede economic reforms. All these problems do, however, not justify a general rejection of direct popular rights. Thus, we conclude by listing several points that should be observed in order to safeguard the well functioning of direct democracy.
