Government Spending and Legislative Organization: Quasi-experimental evidence from Germany
Publikation: Working paper › Forskning
Dokumenter
- Wp-10-09
Forlagets udgivne version, 258 KB, PDF-dokument
This paper presents empirical evidence of a positive effect of council size on government spending using a data set of 2,056 municipalities in the German state of Bavaria over a period of 21 years. We apply a regression discontinuity design to avoid an endogeneity bias. In particular, we exploit discontinuities in the legal rule that relates population size of a municipality to council size to identify a causal relationship between council size and public spending, and find a robust positive impact of council size on spending. Moreover, we show that municipalities primarily adjust current expenditure in response to a rise in council size.
Originalsprog | Engelsk |
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Udgiver | Department of Economics, University of Copenhagen |
Antal sider | 14 |
Status | Udgivet - 2010 |
Bibliografisk note
JEL classification: D7, H7, C2
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ID: 21858919