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The political determinants of government spending allocation and growth

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  • Batzilis, Dimitris

Abstract

I study the allocation of spending, and the impact of politics on regional growth in Greece, using a large dataset that covers the period between 1959 and 2010. I find that electoral districts that vote for the majority party and are represented by majority MPs receive more spending from the central government, and grow faster. Districts do not seem to enjoy any additional benefits when their elected representatives also occupy positions in the executive branch of the government.

Suggested Citation

  • Batzilis, Dimitris, 2020. "The political determinants of government spending allocation and growth," Research in Economics, Elsevier, vol. 74(3), pages 213-220.
    • Handle: RePEc:eee:reecon:v:74:y:2020:i:3:p:213-220
    DOI: 10.1016/j.rie.2020.07.001
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    References listed on IDEAS

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    1. Andrés Rodríguez-Pose & Yannis Psycharis & Vassilis Tselios, 2012. "Public investment and regional growth and convergence: Evidence from Greece," Papers in Regional Science, Wiley Blackwell, vol. 91(3), pages 543-568, August.
    2. Levitt, Steven D & Poterba, James M, 1999. "Congressional Distributive Politics and State Economic Performance," Public Choice, Springer, vol. 99(1-2), pages 185-216, April.
    3. Yannis Psycharis, 2008. "Public Spending Patterns: the regional allocation of public investment in Greece by political period," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 14, Hellenic Observatory, LSE.
    4. Lee, Frances E., 2000. "Senate Representation and Coalition Building in Distributive Politics," American Political Science Review, Cambridge University Press, vol. 94(1), pages 59-72, March.
    5. David Albouy, 2013. "Partisan Representation in Congress and the Geographic Distribution of Federal Funds," The Review of Economics and Statistics, MIT Press, vol. 95(1), pages 127-141, March.
    6. Matthew Lambrinidis & Yannis Psycharis & Antonis Rovolis, 2005. "Regional allocation of public infrastructure investment: The case of Greece," Regional Studies, Taylor & Francis Journals, vol. 39(9), pages 1231-1244.
    7. Alvarez, R Michael & Saving, Jason L, 1997. "Congressional Committees and the Political Economy of Federal Outlays," Public Choice, Springer, vol. 92(1-2), pages 55-73, July.
    8. Hird, John A., 1991. "The Political Economy of Pork: Project Selection at The U.S. Army Corps of Engineers," American Political Science Review, Cambridge University Press, vol. 85(2), pages 429-456, June.
    9. Brian Knight, 2005. "Estimating the Value of Proposal Power," American Economic Review, American Economic Association, vol. 95(5), pages 1639-1652, December.
    10. Lauren Cohen & Joshua D. Coval & Christopher Malloy, 2010. "Do Powerful Politicians Cause Corporate Downsizing?," NBER Working Papers 15839, National Bureau of Economic Research, Inc.
    11. Berry, Christopher R. & Burden, Barry C. & Howell, William G., 2010. "The President and the Distribution of Federal Spending," American Political Science Review, Cambridge University Press, vol. 104(4), pages 783-799, November.
    12. Yannis Psycharis, 2008. "Public Spending Patterns," Contributions to Economics, in: Harry Coccossis & Yannis Psycharis (ed.), Regional Analysis and Policy, pages 41-71, Springer.
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    Cited by:

    1. Fernando Antonio Ignacio González & Lara Sofia Cantero & Pablo Ariel Szyszko, 2022. "Favoritismo Regional en Argentina," Working Papers 199, Red Nacional de Investigadores en Economía (RedNIE).

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