Voters Prefer More Qualified Mayors, but Does It Matter for Public Finances?: Evidence for Germany
AbstractThis paper studies the importance of politician's qualification, in terms of education and experience, for fiscal outcomes. The analysis is based on a large panel for 2,031 German municipalities for which we have collected information on municipal budgets as well as the election results and qualification levels of mayoral candidates. We principally use a Regression Discontinuity Design focusing on close elections to estimate causal effects. We find that mayors with prior experience in office indeed tend to reduce the level of local public debt, lower total municipal expenditures and decrease the local taxes. In contrast, the education level of the mayor exerts no significant effects on the overall fiscal performance of the municipality. The results are partly surprising as both education and experience are shown to matter greatly in the electoral success of mayoral candidates.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 1262.
Length: 39 p.
Date of creation: 2012
Date of revision:
Mayoral elections; regression discontinuity design; politician's education and experience; fiscal outcomes;
Find related papers by JEL classification:
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
- H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-01-07 (All new papers)
- NEP-CDM-2013-01-07 (Collective Decision-Making)
- NEP-POL-2013-01-07 (Positive Political Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dreher, Axel & Lamla, Michael J. & Lein, Sarah M. & Somogyi, Frank, 2009.
"The impact of political leaders' profession and education on reforms,"
Journal of Comparative Economics,
Elsevier, vol. 37(1), pages 169-193, March.
- Axel Dreher & Michael J. Lamla & Sarah M. Rupprecht & Frank Somogyi, 2006. "The impact of political leaders’ profession and education on reforms," KOF Working papers 06-147, KOF Swiss Economic Institute, ETH Zurich.
- Galasso, Vincenzo & Nannicini, Tommaso, 2009.
"Competing on Good Politicians,"
IZA Discussion Papers
4282, Institute for the Study of Labor (IZA).
- Vincenzo Galasso & Tommaso Nannicini, 2010. "Competing on Good Politicians," Working Papers 368, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Galasso, Vincenzo & Nannicini, Tommaso, 2009. "Competing on Good Politicians," CEPR Discussion Papers 7363, C.E.P.R. Discussion Papers.
- Kenneth Rogoff & Anne Sibert, 1988.
"Elections and Macroeconomic Policy Cycles,"
NBER Working Papers
1838, National Bureau of Economic Research, Inc.
- Persson, Torsten & Roland, Gerard & Tabellini, Guido, 1997.
"Separation of Powers and Political Accountability,"
The Quarterly Journal of Economics,
MIT Press, vol. 112(4), pages 1163-1202, November.
- Gohlmann, Silja & Vaubel, Roland, 2007. "The educational and occupational background of central bankers and its effect on inflation: An empirical analysis," European Economic Review, Elsevier, vol. 51(4), pages 925-941, May.
- Svaleryd, Helena, 2007.
"Women's Representation and Public Spending,"
Working Paper Series
701, Research Institute of Industrial Economics.
- David S. Lee & Thomas Lemieux, 2009.
"Regression Discontinuity Designs in Economics,"
NBER Working Papers
14723, National Bureau of Economic Research, Inc.
- Timothy Besley & Jose G. Montalvo & Marta Reynal‐Querol, 2011. "Do Educated Leaders Matter?," Economic Journal, Royal Economic Society, vol. 121(554), pages F205-, 08.
- Stefano Gagliarducci & Tommaso Nannicini, 2008.
"Do Better Paid Politicians Perform Better? Disentangling Incentives from Selection,"
346, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Stefano Gagliarducci & Tommaso Nannicini, 2013. "Do Better Paid Politicians Perform Better? Disentangling Incentives From Selection," Journal of the European Economic Association, European Economic Association, vol. 11(2), pages 369-398, 04.
- Gagliarducci, Stefano & Nannicini, Tommaso, 2009. "Do Better Paid Politicians Perform Better? Disentangling Incentives from Selection," IZA Discussion Papers 4400, Institute for the Study of Labor (IZA).
- Stefano Gagliarducci & Tommaso Nannicini, 2010. "Do Better Paid Politicians Perform Better? Disentangling Incentives from Selection," CEIS Research Paper 162, Tor Vergata University, CEIS, revised 28 May 2010.
- Timothy Besley & Anne Case, 1993.
"Does Electoral Accountability Affect Economic Policy Choices? Evidence from Gubernatorial Term Limits,"
NBER Working Papers
4575, National Bureau of Economic Research, Inc.
- Besley, Timothy & Case, Anne, 1995. "Does Electoral Accountability Affect Economic Policy Choices? Evidence from Gubernatorial Term Limits," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 769-98, August.
- Beate R. Jochimsen & Sebastian Thomasius, 2012. "The Perfect Finance Minister: Whom to Appoint as Finance Minister to Balance the Budget?," Discussion Papers of DIW Berlin 1188, DIW Berlin, German Institute for Economic Research.
- Maria Paola & Vincenzo Scoppa, 2011.
"Political competition and politician quality: evidence from Italian municipalities,"
Springer, vol. 148(3), pages 547-559, September.
- Maria De Paola & Vincenzo Scoppa, 2010. "Political Competition And Politician Quality: Evidence From Italian Municipalities," Working Papers 201005, Università della Calabria, Dipartimento di Scienze Economiche, Statistiche e Finanziarie (Ex Dipartimento di Economia e Statistica).
- McCrary, Justin, 2008. "Manipulation of the running variable in the regression discontinuity design: A density test," Journal of Econometrics, Elsevier, vol. 142(2), pages 698-714, February.
- Etienne Farvaque & Hakim Hammadou & Piotr Stanek, 2011. "Selecting Your Inflation Targeters: Background and Performance of Monetary Policy Committee Members," German Economic Review, Verein für Socialpolitik, vol. 12(2), pages 223-238, 05.
- Etienne Farvaque & Hakim Hammadou & Piotr Stanek, 2009. "Select your Committee: the Impact of Central Bankers Background on Inflation," Economie Internationale, CEPII research center, issue 117, pages 99-129.
- Lee, David S., 2008. "Randomized experiments from non-random selection in U.S. House elections," Journal of Econometrics, Elsevier, vol. 142(2), pages 675-697, February.
- Guido Imbens & Karthik Kalyanaraman, 2012. "Optimal Bandwidth Choice for the Regression Discontinuity Estimator," Review of Economic Studies, Oxford University Press, vol. 79(3), pages 933-959.
- Per Pettersson-Lidbom, 2008. "Do Parties Matter for Economic Outcomes? A Regression-Discontinuity Approach," Journal of the European Economic Association, MIT Press, vol. 6(5), pages 1037-1056, 09.
- Hahn, Jinyong & Todd, Petra & Van der Klaauw, Wilbert, 2001. "Identification and Estimation of Treatment Effects with a Regression-Discontinuity Design," Econometrica, Econometric Society, vol. 69(1), pages 201-09, January.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bibliothek).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.