This paper examines the effect of local political decision-making institutions (i.e., citizens assembly vs. representative democracy) on citizens’ preferences toward public spending. Exogenous variation in institutions comes from a regression discontinuity design, which exploits a discrete change in the probability that a municipality has representative democracy based on a legally stipulated population threshold in the Swiss canton (state) of Vaud. Policies preferences by municipality are measured by vote shares on Swiss national referendums and initiatives that, if approved, would have increased public spending. Relative to direct democracy, representative democracy reduces vote shares in favor of spending by around 5 percentage points. The effect is unlikely due to sorting on other observables or to feedback from changes in local policies. These findings demonstrate the importance of preferences as a channel through which political decision-making institutions can affect public policies.

(2021). Form of government and voters’ preferences for public spending [journal article - articolo]. In JOURNAL OF ECONOMIC BEHAVIOR & ORGANIZATION. Retrieved from http://hdl.handle.net/10446/181941

Form of government and voters’ preferences for public spending

Galletta, Sergio
2021-01-01

Abstract

This paper examines the effect of local political decision-making institutions (i.e., citizens assembly vs. representative democracy) on citizens’ preferences toward public spending. Exogenous variation in institutions comes from a regression discontinuity design, which exploits a discrete change in the probability that a municipality has representative democracy based on a legally stipulated population threshold in the Swiss canton (state) of Vaud. Policies preferences by municipality are measured by vote shares on Swiss national referendums and initiatives that, if approved, would have increased public spending. Relative to direct democracy, representative democracy reduces vote shares in favor of spending by around 5 percentage points. The effect is unlikely due to sorting on other observables or to feedback from changes in local policies. These findings demonstrate the importance of preferences as a channel through which political decision-making institutions can affect public policies.
articolo
Galletta, Sergio
(2021). Form of government and voters’ preferences for public spending [journal article - articolo]. In JOURNAL OF ECONOMIC BEHAVIOR & ORGANIZATION. Retrieved from http://hdl.handle.net/10446/181941
File allegato/i alla scheda:
File Dimensione del file Formato  
1-s2.0-S0167268121001402-main.pdf

Solo gestori di archivio

Versione: publisher's version - versione editoriale
Licenza: Licenza default Aisberg
Dimensione del file 1.32 MB
Formato Adobe PDF
1.32 MB Adobe PDF   Visualizza/Apri
Pubblicazioni consigliate

Aisberg ©2008 Servizi bibliotecari, Università degli studi di Bergamo | Terms of use/Condizioni di utilizzo

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10446/181941
Citazioni
  • Scopus 1
  • ???jsp.display-item.citation.isi??? 1
social impact