In light of the recent riots in the UK (not to mention Greece, Spain, etc) this paper by Ponticelli and Voth is very timely. The paper takes a sample of European countries from 1919 to 2009 and looks at the incidence of various forms of political instability as a function of government austerity. The graph above provides the take-away for most people. The y-axis is number of incidents of instability per year per country while the various shaded bars represent increasing amounts of austerity (measured as the cut in government budget divided by the country’s GDP). The “Chaos” group is simply the sum of all the other kinds of problems. Clearly, the larger the cutback, the higher the chance of resulting social problems.
Read more http://inteldaily.com/2011/08/in-light-of-the-recent-riots-in-the-uk-not-to-mention-greece-spain-etc-this-paper-by-ponticelli-and-voth-is-very-timely-the-paper-takes-a-sample-of-european-countries-from-1919-to-2009-and-looks/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+inteldaily%2Ffeeds+%28Inteldaily.com%29
Read more http://inteldaily.com/2011/08/in-light-of-the-recent-riots-in-the-uk-not-to-mention-greece-spain-etc-this-paper-by-ponticelli-and-voth-is-very-timely-the-paper-takes-a-sample-of-european-countries-from-1919-to-2009-and-looks/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+inteldaily%2Ffeeds+%28Inteldaily.com%29
