Political Fragmentation and Government Stability: Evidence from Local Governments in Spain
- (pp. 23-50)
Abstract
This paper studies how political fragmentation affects government stability. Using a regression discontinuity design, we show that each additional party with representation in the local parliament increases the probability that the incumbent government is unseated by 5 percentage points. The entry of an additional party affects stability by reducing the probability of a single-party majority and increasing the instability of governments when such a majority is not available. We interpret our results in light of a bargaining model of coalition formation featuring government instability.Citation
Carozzi, Felipe, Davide Cipullo, and Luca Repetto. 2022. "Political Fragmentation and Government Stability: Evidence from Local Governments in Spain." American Economic Journal: Applied Economics, 14 (2): 23-50. DOI: 10.1257/app.20200128Additional Materials
JEL Classification
- C78 Bargaining Theory; Matching Theory
- D72 Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- H70 State and Local Government; Intergovernmental Relations: General
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