Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/100432 
Authors: 
Year of Publication: 
2014
Series/Report no.: 
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2014: Evidenzbasierte Wirtschaftspolitik - Session: Collective Decision Making II No. B06-V3
Publisher: 
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft, Kiel und Hamburg
Abstract: 
This paper exploits a natural experiment in Hesse where a reform of the electoral rule from mayor appointment by the local council towards direct mayor elections was introduced during a phase-in period from 1993 to 1998. The end of the term of the last appointed mayor varies across municipalities for exogenous historical reasons and determines the timing of the switch in a particular municipality. Di fference-in-di fference estimations for 421 municipalities over the period from 1981 to 2010 reveal that municipalities with a directly elected mayor attract 5% more investment transfers from the state tier. This e ffect only materializes in the election year which suggests that mayors under the new electoral rule put more e ffort into grant applications for highly visible infrastructure projects in order to increase their re-election probability.
JEL: 
D72
H72
H77
Document Type: 
Conference Paper

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