Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/201873 
Year of Publication: 
2019
Series/Report no.: 
CESifo Working Paper No. 7647
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
Spatial inequalities in publicly provided goods such as health care facilities have substantial socio-economic effects. Little is known, however, as to why publicly provided goods diverge among urban and rural regions. We exploit narrow parliamentary majorities in German states between 1950 and 2014 in an RD framework to show that government ideology influences the urban-rural gap in public infrastructure. Leftwing governments relocate hospital beds from rural regions. We propose that leftwing governments do so to gratify their more urban constituencies. In turn, spatial inequalities in hospital infrastructure increase, which seems to influence general and infant mortality.
Subjects: 
publicly provided goods
spatial inequalities
political business cycles
partisan politics
government ideology
health care
hospitals
JEL: 
D72
H42
I18
Document Type: 
Working Paper
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