Replication data for: Government Spending and Legislative Organization: Quasi-experimental Evidence from Germany

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Project Citation:

Egger, Peter, and Koethenbuerger, Marko. Replication data for: Government Spending and Legislative Organization: Quasi-experimental Evidence from Germany. Nashville, TN: American Economic Association [publisher], 2010. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E113766V1

Project Description

Summary: This paper presents empirical evidence of a positive effect of council size on government spending using a dataset 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 relate population size of a municipality in order 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. (JEL D72, H72, R51)

Scope of Project

JEL Classification:
      D72 Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
      H72 State and Local Budget and Expenditures
      R51 Finance in Urban and Rural Economies

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V1 [2019-10-12]

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