Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/70242
Authors: 
Baskaran, Thushyanthan
Year of Publication: 
2012
Series/Report no.: 
Discussion Papers, Center for European Governance and Economic Development Research 144
Abstract: 
Is government ideology important for fiscal policy? I study this question with data from all German States over the period 1975-2005. To identify the effect of ideology, I rely on a fuzzy regression discontinuity design. I find that left-wing state governments spend more than state governments with right-wing and mixed ideology. Deficits of left-wing governments are larger than those of right-wing governments but smaller than those of governments with mixed ideology. These results are robust to sensitivity tests.
Subjects: 
government ideology
fiscal policy
fiscal federalism
JEL: 
D72
D78
E62
H72
Document Type: 
Working Paper

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