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http://hdl.handle.net/10419/66867
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| Title: | | Do absolute majorities spend less? Evidence from Germany  |
| Authors: | | Freier, Ronny Odendahl, Christian |
| Issue Date: | | 2012 |
| Series/Report no.: | | Discussion Papers, German Institute for Economic Research, DIW Berlin 1239 |
| Abstract: | | The number of parties in government is usually considered to increase spending. We show that this is not necessarily the case. Using a new method to detect close election outcomes in multi-party systems, we isolate truly exogenous variation in the type of government. With data from municipalities in the German state of Bavaria, we show in regression discontinuity-type estimations that absolute majorities spend more, not less, and increase the property tax rate. We also find weakly significant results for increases in debt. Politically, our results show that the mayor that heads an absolute majority of his own party gains the most, but the party itself does not. |
| Subjects: | | fiscal spending local election absolute majority municipality data regression discontinuity |
| JEL: | | H11 H71 H72 H74 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Publikationen von Forscherinnen und Forschern des DIW DIW-Diskussionspapiere
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