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Legislature and Constituency Size in Italian Regions: Forecasting the Effects of a Reform

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  • Nadia Fiorino
  • Roberto Ricciuti

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    Abstract

    In this paper we analyze the effect of different legislature and constituency size on per capita regional expenditure in Italy. According to the theory, legislature size has an indefinite effect on government spending because logrolling and transaction costs may have canceling effects. In turn, smaller constituency size is predicted to decrease government spending, because of homogeneity of interests and low monitoring costs. We find a large and significantly positive effect of the number of legislators and a negative effect for constituency size. We use these findings to forecast the effects of the increase in the number of legislators that are occurring in some regions

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    File URL: http://www.econ-pol.unisi.it/quaderni/448.pdf
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    Bibliographic Info

    Paper provided by Department of Economics, University of Siena in its series Department of Economics University of Siena with number 448.

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    Date of creation: Apr 2005
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    Handle: RePEc:usi:wpaper:448

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    Keywords: Legislature size; constituency size; regional expenditure;

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    1. Gilligan, Thomas W & Matsusaka, John G, 1995. "Deviations from Constituent Interests: The Role of Legislative Structure and Political Parties in the States," Economic Inquiry, Western Economic Association International, vol. 33(3), pages 383-401, July.
    2. Mark Thornton & Marc Ulrich, 1999. "Constituency Size and Government Spending," Public Finance Review, , vol. 27(6), pages 588-598, November.
    3. Weingast, Barry R & Shepsle, Kenneth A & Johnsen, Christopher, 1981. "The Political Economy of Benefits and Costs: A Neoclassical Approach to Distributive Politics," Journal of Political Economy, University of Chicago Press, vol. 89(4), pages 642-64, August.
    4. Marilyn Young & Michael Reksulak & William F. Shughart, 2001. "The Political Economy of the IRS," Economics and Politics, Wiley Blackwell, vol. 13(2), pages 201-220, 07.
    5. Bradbury, John Charles & Crain, W. Mark, 2001. "Legislative organization and government spending: cross-country evidence," Journal of Public Economics, Elsevier, vol. 82(3), pages 309-325, December.
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