Corvinus
Corvinus

What is populism? An institutional economics approach with reference to Hungary

Ádám, Zoltán (2018) What is populism? An institutional economics approach with reference to Hungary. In: Varieties of Transition. Papers presented at The Second International Economic Forum on Reform, Transition and Growth. Corvinus University of Budapest, Budapest, pp. 83-98. ISBN 9789638887931

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Abstract

This paper conceptualizes populism in an institutional economics context. Examining the literature on populism in political science, it subscribes to the view that populism is a degraded form of democracy that holds elections in regular intervals as rituals of popular legitimation, but undermines pluralism and diminishes effective political choice. Based on the theory of transaction cost economics, the paper argues that populism is a form of government that reduces political uncertainties inherently present in liberal democracies, and hence mitigates political transaction costs. At times of crises and a mismatch between formal and informal institutions conditioning political exchange, demand for such a restricted form of democracy rises. This is what happened in Hungary towards the end of the 2000s, in a period characterized by fiscal stabilization and the socially costly impact of the global financial crisis.

Item Type:Book Section
JEL classification:P10 - Capitalist Systems: General
P16 - Capitalist Systems: Political Economy
P48 - Political Economy; Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
P51 - Comparative Analysis of Economic Systems
Subjects:Economic policy
Economics
ID Code:3744
Deposited By: Ádám Hoffmann
Deposited On:05 Nov 2018 15:44
Last Modified:05 Nov 2018 15:45

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