Abstract

http://ssrn.com/abstract=2084166
 


 



Do Coalitions Really Cause Larger Government Expenditures? – Mixed Evidence from a Regression Discontinuity Design


Sebastian Garmann


University of Dortmund - Ruhr Graduate School in Economics; University of Dortmund

May 14, 2012

Ruhr Economic Paper No. 339

Abstract:     
This paper measures the causal effect of coalition vs. single-party governments on fiscal policies using a data set of 396 municipalities in the German state of North Rhine-Westphalia in the time period 1985-2004. Using a regression discontinuity design to take the endogeneity of the type of government into account, we exploit a discontinuity that comes through the change from a coalition to a single-party government at 50% of the seat share of the strongest party. Our results point to a significant effect of the type of government on personnel expenditures, while we do not find significant results for material spending and investment expenditures. These results differ substantially from simple OLS estimates.

Number of Pages in PDF File: 38

Keywords: Legislative organization, regression discontinuity design, local fiscal policy

JEL Classification: C21, D72, D78, H11, H72

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Date posted: June 16, 2012  

Suggested Citation

Garmann, Sebastian, Do Coalitions Really Cause Larger Government Expenditures? – Mixed Evidence from a Regression Discontinuity Design (May 14, 2012). Ruhr Economic Paper No. 339. Available at SSRN: http://ssrn.com/abstract=2084166 or http://dx.doi.org/10.2139/ssrn.2084166

Contact Information

Sebastian Garmann (Contact Author)
University of Dortmund - Ruhr Graduate School in Economics ( email )
Hohenzollernstr. 1-3
Essen, DE NRW 45128
Germany
University of Dortmund ( email )
Vogelpothsweg 87
Dortmund, NRW D-44221
Germany
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