Rethinking public auditing institutions: Empirical evidence from Swiss municipalities
AbstractIn the economic literature various political institutions designed to control the government have been analyzed. However, an important institution has been neglected so far: independent auditing institutions with an extended mandate to analyze the budget draft and individual policy proposals. We argue that auditors with an extended mandate improve transparency and provide essential information on the impact of policy proposals on common pool resources. This leads to less wasteful spending and a more efficient allocation of public resources. We empirically analyze the policy impact of local auditors with an extended audit mandate in Switzerland. Auditors, who can evaluate and criticize policy proposals ex ante to policy decisions, significantly reduce the general tax burden and public expenditures. We find similar results with different datasets. These results are robust to various changes in the econometric specification
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 Institut d'Economia de Barcelona (IEB) in its series Working Papers with number 2008/3.
Length: 38 pages
Date of creation: 2008
Date of revision:
Auditor; audit court; special interests; political economics; public finance.;
Other versions of this item:
- Mark Schelker & Reiner Eichenberger, 2008. "Rethinking Public Auditing Institutions: Empirical Evidence from Swiss Municipalities," CREMA Working Paper Series 2008-06, Center for Research in Economics, Management and the Arts (CREMA).
- D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
- H10 - Public Economics - - Structure and Scope of Government - - - General
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Schelker, Mark & Eichenberger, Reiner, 2010. "Auditors and fiscal policy: Empirical evidence on a little big institution," Journal of Comparative Economics, Elsevier, vol. 38(4), pages 357-380, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.