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Single‐Party Rule, Public Spending, and Political Rents: Evidence from Finnish Municipalities

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  • Jaakko Meriläinen

Abstract

In this paper, I investigate the differences in public spending and extraction of political rents between single‐party and coalition governments. Common pool theories predict that coalitions tend to spend more and extract more rents than single‐party governments. Using data from Finnish municipalities for the years 1997–2012 and a regression discontinuity design approach tailored for proportional elections, I provide causal evidence consistent with the theoretical predictions.

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  • Jaakko Meriläinen, 2019. "Single‐Party Rule, Public Spending, and Political Rents: Evidence from Finnish Municipalities," Scandinavian Journal of Economics, Wiley Blackwell, vol. 121(2), pages 736-762, April.
    • Handle: RePEc:bla:scandj:v:121:y:2019:i:2:p:736-762
    DOI: 10.1111/sjoe.12288
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    2. Rafael Hortala-Vallve & Jaakko Meriläinen & Janne Tukiainen, 2021. "Pre-Electoral Coalitions: Insights into the Creation of Political Parties," Discussion Papers 143, Aboa Centre for Economics.

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