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The Effects of Social Capital on Government Performance and Turnover : Theory and Evidence from Italian Municipalities

Author

Listed:
  • Bracco, Emanuele

    (Universita di Verona)

  • Liberini, Federica

    (University of Bath)

  • Lockwood, Ben

    (University of Warwick)

  • Porcelli, Francesco

    (ESRC CAGE Centre & Universita di Bari)

  • Redoano, Michela

    (University of Warwick)

  • Sgroi, Daniel

    (University of Warwick, IZA & ESRC CAGE Centre)

Abstract

This paper makes three contributions. First, it presents a theoretical analysis of how social capital, formalized as trust in politicians, impacts on government performance and turnover, employing a political agency model with both moral hazard and adverse selection. Second, it presents novel measures of both local government performance and on social capital at the Italian municipality level, using administrative data and an online survey respectively. Third, empirical results are consistent with the main predictions of the theory; higher social capital improves both the discipline and selection effects of elections (performance both in the first and final terms in office), but also increases turnover of incumbent mayors.

Suggested Citation

  • Bracco, Emanuele & Liberini, Federica & Lockwood, Ben & Porcelli, Francesco & Redoano, Michela & Sgroi, Daniel, 2021. "The Effects of Social Capital on Government Performance and Turnover : Theory and Evidence from Italian Municipalities," QAPEC Discussion Papers 04, Quantitative and Analytical Political Economy Research Centre.
    • Handle: RePEc:wrk:wqapec:04
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Social Capital ; Voting ; Elections ; Government Efficiency JEL Classification: H41 ; H72 ; D72;
    All these keywords.

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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