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Distaste for centralization: evidence from a quasi-natural experiment in Switzerland

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  • Flèche, Sarah

Abstract

Do people care about the degree of centralization? This paper examines the effects of local centralization reforms on individuals' well-being using a quasi-natural experiment in Switzerland. The results reveal that centralization has a causal negative impact on individuals' life satisfaction. Consistent with the concept of procedural utility, centralization reduces individuals' feeling of having political influence and interest in politics. In contrast, there are no impacts on individuals' satisfaction with local governments' performance. These findings shed new light on what people value in decentralized institutions.

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  • Flèche, Sarah, 2015. "Distaste for centralization: evidence from a quasi-natural experiment in Switzerland," LSE Research Online Documents on Economics 64999, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:64999
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    2. Odermatt, Reto & Stutzer, Alois, 2017. "Subjective Well-Being and Public Policy," IZA Discussion Papers 11102, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    decentralization; life satisfaction; public spending; procedural utility;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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