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Single vs double ballot and party coalitions: the impact on fiscal policy. Evidence from Italy

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Author Info

  • Leonzio Rizzo

    ()
    (Università di Ferrara & IEB)

  • Alberto Zanardi

    ()
    (Università di Bologna & Econopubblica-Bocconi)

Abstract

We use data for all Italian municipalities, from 2001-2006, to empirically test the extent to which two electoral rules, which hold, for small and large municipalities, affect fiscal policy decisions. Municipalities with fewer than 15,000 inhabitants elect their mayors in accordance with a single ballot plurality rule while the rest of the municipalities uses a run-off plurality rule. Per capita total taxes, charges and current expenditure in large municipalities are lower than in small ones if the mayor of the large municipality does not need a broad coalition to be elected.

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Bibliographic Info

Paper provided by Institut d'Economia de Barcelona (IEB) in its series Working Papers with number 2012/33.

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Length: 35 pages
Date of creation: 2012
Date of revision:
Handle: RePEc:ieb:wpaper:2012/6/doc2012-33

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Keywords: Federal budget; double ballot; coalition; list; taxes; expenditure;

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  1. David Austen-Smith, 2000. "Redistributing Income under Proportional Representation," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 108(6), pages 1235-1269, December.
  2. Nicola Persico & Alessandro Lizzeri, 2001. "The Provision of Public Goods under Alternative Electoral Incentives," American Economic Review, American Economic Association, American Economic Association, vol. 91(1), pages 225-239, March.
  3. 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.
  4. César Martinelli, 2002. "Simple plurality versus plurality runoff with privately informed voters," Social Choice and Welfare, Springer, Springer, vol. 19(4), pages 901-919.
  5. Roger B. Myerson, 1991. "Effectiveness of Electoral Systems for Reducing Government Corruption: A Game-Theoretic Analysis," Discussion Papers, Northwestern University, Center for Mathematical Studies in Economics and Management Science 956, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  6. Stefano Gagliarducci & Tommaso Nannicini, 2013. "Do Better Paid Politicians Perform Better? Disentangling Incentives From Selection," Journal of the European Economic Association, European Economic Association, European Economic Association, vol. 11(2), pages 369-398, 04.
  7. Guido Imbens & Thomas Lemieux, 2007. "Regression Discontinuity Designs: A Guide to Practice," NBER Technical Working Papers, National Bureau of Economic Research, Inc 0337, National Bureau of Economic Research, Inc.
  8. Myerson, Roger B., 1999. "Theoretical comparisons of electoral systems," European Economic Review, Elsevier, Elsevier, vol. 43(4-6), pages 671-697, April.
  9. Peter Egger & Marko Koethenbuerger, 2010. "Government Spending and Legislative Organization: Quasi-experimental Evidence from Germany," American Economic Journal: Applied Economics, American Economic Association, American Economic Association, vol. 2(4), pages 200-212, October.
  10. Laurent Bouton, 2012. "A Theory of Strategic Voting in Runoff Elections," Boston University - Department of Economics - Working Papers Series, Boston University - Department of Economics WP2012-001, Boston University - Department of Economics.
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