Budget Referendums and Government Spending: Evidence from Swiss
AbstractNew government spending must be approved by a referendum of citizens in many Swiss cantons. This decisionmaking procedure seems like a simple way to address citizen-legislator agency problems, but little systematic evidence is available concerning its effect on spending outcomes. We estimate spending regressions for Swiss cantons using panel data from 1986 to 1997. After controlling for demographics and other determinants of spending, mandatory referendums on new spending are found to reduce the size of the budget by 17% for the median canton.
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Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 323.
Date of creation: 2000
Date of revision:
Budget referendums; initiatives; government spending;
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