IDEAS home Printed from https://ideas.repec.org/a/eee/ecolet/v211y2022ics0165176522000015.html
   My bibliography  Save this article

The impact of democratic elections on taxation: Quasi-experimental evidence from subnational Indonesia

Author

Listed:
  • Lewis, Blane D.

Abstract

I examine the impact of direct mayoral elections on taxation in Indonesia. I find that districts led by directly elected mayors tax less than districts with council appointed executives. Uniquely in the literature, I also determine that districts with directly elected mayors and, by implication, districts with council appointed heads both tax more than their counterparts with central government appointed executives.

Suggested Citation

  • Lewis, Blane D., 2022. "The impact of democratic elections on taxation: Quasi-experimental evidence from subnational Indonesia," Economics Letters, Elsevier, vol. 211(C).
    • Handle: RePEc:eee:ecolet:v:211:y:2022:i:c:s0165176522000015
    DOI: 10.1016/j.econlet.2022.110270
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0165176522000015
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.econlet.2022.110270?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jorge Martinez-Vazquez & Santiago Lago-Peñas & Agnese Sacchi, 2017. "The Impact Of Fiscal Decentralization: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 31(4), pages 1095-1129, September.
    2. Stephen Coate & Brian Knight, 2011. "Government Form and Public Spending: Theory and Evidence from US Municipalities," American Economic Journal: Economic Policy, American Economic Association, vol. 3(3), pages 82-112, August.
    3. Sant’Anna, Pedro H.C. & Zhao, Jun, 2020. "Doubly robust difference-in-differences estimators," Journal of Econometrics, Elsevier, vol. 219(1), pages 101-122.
    4. Sun, Liyang & Abraham, Sarah, 2021. "Estimating dynamic treatment effects in event studies with heterogeneous treatment effects," Journal of Econometrics, Elsevier, vol. 225(2), pages 175-199.
    5. Florian Ade, 2014. "Do constitutions matter? Evidence from a natural experiment at the municipality level," Public Choice, Springer, vol. 160(3), pages 367-389, September.
    6. Blane D. Lewis, 2020. "How do mayors get elected? The causal effects of pre-electoral coalitions on mayoral election outcomes in Indonesia," Local Government Studies, Taylor & Francis Journals, vol. 46(3), pages 394-413, May.
    7. Sjahrir, Bambang Suharnoko & Kis-Katos, Krisztina & Schulze, Günther G., 2013. "Political budget cycles in Indonesia at the district level," Economics Letters, Elsevier, vol. 120(2), pages 342-345.
    8. Callaway, Brantly & Sant’Anna, Pedro H.C., 2021. "Difference-in-Differences with multiple time periods," Journal of Econometrics, Elsevier, vol. 225(2), pages 200-230.
    9. Blane Lewis, 2003. "Tax And Charge Creation By Regional Governments Under Fiscal Decentralisation: Estimates And Explanations," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 39(2), pages 177-192.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xin Nie & Jianxian Wu & Han Wang & Weijuan Li & Chengdao Huang & Lihua Li, 2022. "Contributing to carbon peak: Estimating the causal impact of eco‐industrial parks on low‐carbon development in China," Journal of Industrial Ecology, Yale University, vol. 26(4), pages 1578-1593, August.
    2. Geschwind, Stephan & Roesel, Felix, 2022. "Taxation under direct democracy," Journal of Economic Behavior & Organization, Elsevier, vol. 200(C), pages 536-554.
    3. Siân Mughan & Dallin Overstreet, 2023. "The impact of government form on resource allocation in local government, evidence from municipal court closures," Public Budgeting & Finance, Wiley Blackwell, vol. 43(2), pages 3-26, July.
    4. Dmitry Arkhangelsky & Guido Imbens, 2023. "Causal Models for Longitudinal and Panel Data: A Survey," Papers 2311.15458, arXiv.org, revised Mar 2024.
    5. Roth, Jonathan & Sant’Anna, Pedro H.C. & Bilinski, Alyssa & Poe, John, 2023. "What’s trending in difference-in-differences? A synthesis of the recent econometrics literature," Journal of Econometrics, Elsevier, vol. 235(2), pages 2218-2244.
    6. William N. Dowd, 2023. "The effect of untargeted naloxone distribution on opioid overdose outcomes," Health Economics, John Wiley & Sons, Ltd., vol. 32(12), pages 2801-2818, December.
    7. Jha, Chandan Kumar & Joshi, Swarup, 2023. "Municipal bankruptcies and crime," International Review of Financial Analysis, Elsevier, vol. 89(C).
    8. Goodman-Bacon, Andrew, 2021. "Difference-in-differences with variation in treatment timing," Journal of Econometrics, Elsevier, vol. 225(2), pages 254-277.
    9. Freedman, Matthew & Khanna, Shantanu & Neumark, David, 2023. "Combining rules and discretion in economic development policy: Evidence on the impacts of the California Competes Tax Credit," Journal of Public Economics, Elsevier, vol. 217(C).
    10. Kim, Woojin, 2022. "Television and American consumerism," Journal of Public Economics, Elsevier, vol. 208(C).
    11. Albanese, Andrea & Nieto, Adrián & Tatsiramos, Konstantinos, 2022. "Job Location Decisions and the Effect of Children on the Employment Gender Gap," GLO Discussion Paper Series 1113, Global Labor Organization (GLO).
    12. Wilmar Cabrera & Santiago Gamba & Camilo Gómez & Mauricio Villamizar-Villegas, 2022. "Examining Macroprudential Policy through a Microprudential Lens," Borradores de Economia 1212, Banco de la Republica de Colombia.
    13. Angélica Meinhofer & Allison Witman & Johanna Catherine Maclean & Yuhua Bao, 2022. "Prenatal substance use policies and newborn health," Health Economics, John Wiley & Sons, Ltd., vol. 31(7), pages 1452-1467, July.
    14. Lin, Lihua & Zhang, Zhengyu, 2022. "Interpreting the coefficients in dynamic two-way fixed effects regressions with time-varying covariates," Economics Letters, Elsevier, vol. 216(C).
    15. Ren, Qianping & West, Jeremy, 2023. "Cleaner waters and urbanization," Journal of Environmental Economics and Management, Elsevier, vol. 122(C).
    16. Elena Kotyrlo & Hryhorii M. Kalachyhin, 2023. "The effects of India's bilateral investment treaties termination on foreign direct investment inflows," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 31(4), pages 1007-1033, October.
    17. Marin Skidmore & Tihitina Andarge & Jeremy Foltz, 2023. "Effectiveness of local regulations on nonpoint source pollution: Evidence from Wisconsin dairy farms," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(5), pages 1333-1364, October.
    18. Michelle Marcus & Pedro H. C. Sant’Anna, 2021. "The Role of Parallel Trends in Event Study Settings: An Application to Environmental Economics," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 8(2), pages 235-275.
    19. Kyunghoon Ban & D'esir'e K'edagni, 2022. "Robust Difference-in-differences Models," Papers 2211.06710, arXiv.org, revised Aug 2023.
    20. Blemings, Benjamin & Zhang, Peilu & Neill, Clinton L., 2023. "Where is the value? The impacts of sow gestation crate laws on pork supply and consumer value perceptions," Food Policy, Elsevier, vol. 117(C).

    More about this item

    Keywords

    Democratic elections; Local government; Taxation;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolet:v:211:y:2022:i:c:s0165176522000015. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolet .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.