Polities differ in the extent to which political parties can pre-commit to carry out promised policy actions if they take power. Commitment problems may arise due to a divergence between the ex ante incentives facing national parties that seek to capture control of the legislature and the ex post incentives facing individual legislators, whose interests may be more parochial. We study how differences in %u201Cparty discipline%u201D shape fiscal policy choices. In particular, we examine the determinants of national spending on local public goods in a three-stage game of campaign rhetoric, voting, and legislative decision-making. We find that the rhetoric and reality of pork-barrel spending, and also the efficiency of the spending regime, bear a non-monotonic relationship to the degree of party discipline.
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number
11396.
Length: Date of creation: Jun 2005 Date of revision: Handle: RePEc:nbr:nberwo:11396
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Torsten Persson & Gerard Roland & Guido Tabellini, .
"Comparative Politics and Public Finance,"
Working Papers
114, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
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Grossman, Gene M. & Helpman, Elhanan, 2004.
"A Protectionist Bias in Majoritarian Politics,"
Papers
12-21-2004, Princeton University, Research Program in Political Economy.
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Allan Drazen & Marcela Eslava, 2006.
"Pork Barrel Cycles,"
NBER Working Papers
12190, National Bureau of Economic Research, Inc.
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