Replication data for: Government Spending and Legislative Organization: Quasi-experimental Evidence from Germany
Principal Investigator(s): View help for Principal Investigator(s) Peter Egger; Marko Koethenbuerger
Version: View help for Version V1
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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:
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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:
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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
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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