Abandon Ship? Party Brands and Politicians’ Responses to a Political Scandal

IEB Working Paper N. 2018/03

63 Pages Posted: 20 Mar 2018

See all articles by Gianmarco Daniele

Gianmarco Daniele

University of Milan - Faculty of Law; Bocconi University

Sergio Galletta

ETH Zürich

Benny Geys

BI Norwegian Business School; Vrije Universiteit Brussel (VUB) - Applied Economics Department

Date Written: February 15, 2018

Abstract

How do politicians react to a political earthquake? In this article, we study politicians’ – rather than voters’ – responses to the main political scandal in Italian recent history (Tangentopoli), and overcome endogeneity concerns by analysing the local implications of this national corruption scandal. We find that local politicians withdraw support for incumbents in parties hit by Tangentopoli – inducing early government terminations in such municipalities. Moreover, politicians in parties hit by the scandal exhibit higher rates of party switching and lower re-running rates. By decreasing the value of the party “brand”, scandals thus become transmitted across politicians and levels of government via partisan cues.

Keywords: accountability, corruption, party cues, brands, multi-level governance

JEL Classification: D72, H30, H77

Suggested Citation

Daniele, Gianmarco and Galletta, Sergio and Geys, Benny, Abandon Ship? Party Brands and Politicians’ Responses to a Political Scandal (February 15, 2018). IEB Working Paper N. 2018/03, Available at SSRN: https://ssrn.com/abstract=3141199 or http://dx.doi.org/10.2139/ssrn.3141199

Gianmarco Daniele (Contact Author)

University of Milan - Faculty of Law ( email )

Via Festa del Perdono, 7
20122 Milano
Italy

Bocconi University ( email )

Via Sarfatti 25
Milan, MI 20136
Italy

Sergio Galletta

ETH Zürich ( email )

Rämistrasse 101
ZUE F7
Zürich, 8092
Switzerland

Benny Geys

BI Norwegian Business School ( email )

Nydalsveien 37
Oslo, 0442
Norway

Vrije Universiteit Brussel (VUB) - Applied Economics Department ( email )

Pleinlaan 2
1040 Etterbeek
Brussel, CA 1040
Belgium

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