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Economic insecurity and political stability: A case for growth-Targeting systemic vote

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Konstantinos Matakos, Dimitrios Xefteris

Original languageEnglish
Pages (from-to)829-862
Number of pages34
JournalOxford Economic Papers
Issue number3
Published1 Jul 2020

King's Authors


In this paper, we focus on the years before the Great Recession (1960-2007) and, after addressing possible issues of endogeneity, we study the effects of economic fluctuations on political stability. We find that when the economy is not in turmoil, there is a strong positive relationship between unemployment (i.e the major macroeconomic determinant of economic insecurity) and electoral support for systemic parties (i.e. parties with a serious aspiration to governing). That is, democratic politics respond to increasing economic insecurity by enhancing the prospects of political stability and, consequently, economic prosperity and growth.

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