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Do political parties matter? Evidence from German municipalities

Abstract:
We assess whether the partisanship of local councils affects the level and composition of local public spending by German municipalities. Our identification strategy exploits changes in the party with the absolute majority in the local council, combining an instrumental variable strategy with a matching approach to address potential selection into treatment. We find evidence for strong partisan effects: Communities with a left-wing council majority spend more on ‘people-oriented’ public goods and less on infrastructure than communities with a right-wing dominated council.
Publication status:
Published
Peer review status:
Peer reviewed

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Files:
Publisher copy:
10.1515/ger-055-19

Authors


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Institution:
University of Oxford
Division:
SSD
Department:
Saïd Business School
Role:
Author


Publisher:
Walter de Gruyter GmbH
Journal:
German Economic Review More from this journal
Volume:
22
Issue:
2
Pages:
153-198
Publication date:
2020-10-07
Acceptance date:
2020-08-24
DOI:
EISSN:
1468-0475
ISSN:
1465-6485


Language:
English
Keywords:
Pubs id:
1166517
Local pid:
pubs:1166517
Deposit date:
2021-03-08

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