IDEAS home Printed from https://ideas.repec.org/a/eee/pubeco/v120y2014icp193-204.html
   My bibliography  Save this article

Electoral vulnerability and size of local governments: Evidence from voting on municipal mergers

Author

Listed:
  • Hyytinen, Ari
  • Saarimaa, Tuukka
  • Tukiainen, Janne

Abstract

We analyze how anticipated changes in the electoral vulnerability of municipal councilors affect their voting behavior over municipal mergers. The electoral vulnerability changes due to a merger because it changes the composition of political competitors and the number of available seats in the next election. We use this variation for identification and find that the smaller the increase in the electoral vulnerability of a councilor, the more likely he is to vote for the merger. The documented effect is not driven by the behavioral response of the voters, or by party-line considerations. The councilors' desire to avoid personal electoral competition may lead to sub-optimally small municipalities from the local citizens' point of view.

Suggested Citation

  • Hyytinen, Ari & Saarimaa, Tuukka & Tukiainen, Janne, 2014. "Electoral vulnerability and size of local governments: Evidence from voting on municipal mergers," Journal of Public Economics, Elsevier, vol. 120(C), pages 193-204.
  • Handle: RePEc:eee:pubeco:v:120:y:2014:i:c:p:193-204
    DOI: 10.1016/j.jpubeco.2014.09.010
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0047272714002035
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jpubeco.2014.09.010?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. Saarimaa, Tuukka & Tukiainen, Janne, 2015. "Common pool problems in voluntary municipal mergers," European Journal of Political Economy, Elsevier, vol. 38(C), pages 140-152.
    2. Edwards, Jeremy & Keen, Michael, 1996. "Tax competition and Leviathan," European Economic Review, Elsevier, vol. 40(1), pages 113-134, January.
    3. Alberto Alesina & Enrico Spolaore, 1997. "On the Number and Size of Nations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1027-1056.
    4. Stephen Coate & Brian Knight, 2007. "Socially Optimal Districting: A Theoretical and Empirical Exploration," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(4), pages 1409-1471.
    5. Heléne Lundqvist, 2013. "Is it worth it? On the returns to holding political office," Working Papers 2013/14, Institut d'Economia de Barcelona (IEB).
    6. repec:hrv:faseco:4553034 is not listed on IDEAS
    7. Brian Knight, 2008. "Legislative Representation, Bargaining Power and the Distribution of Federal Funds: Evidence from the US Congress," Economic Journal, Royal Economic Society, vol. 118(532), pages 1785-1803, October.
    8. Saarimaa, Tuukka & Tukiainen, Janne, 2016. "Local representation and strategic voting: Evidence from electoral boundary reforms," European Journal of Political Economy, Elsevier, vol. 41(C), pages 31-45.
    9. Reingewertz, Yaniv, 2012. "Do municipal amalgamations work? Evidence from municipalities in Israel," Journal of Urban Economics, Elsevier, vol. 72(2), pages 240-251.
    10. Miceli Thomas J., 1993. "The Decision to Regionalize in the Provision of Education: An Application of the Tiebout Model," Journal of Urban Economics, Elsevier, vol. 33(3), pages 344-360, May.
    11. Timothy Besley & Stephen Coate, 1997. "An Economic Model of Representative Democracy," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(1), pages 85-114.
    12. Lassen, David Dreyer & Serritzlew, Søren, 2011. "Jurisdiction Size and Local Democracy: Evidence on Internal Political Efficacy from Large-scale Municipal Reform," American Political Science Review, Cambridge University Press, vol. 105(2), pages 238-258, May.
    13. Ronny Freier & Christian Odendahl, 2012. "Do Parties Matter?: Estimating the Effect of Political Power in Multi-party Systems," Discussion Papers of DIW Berlin 1205, DIW Berlin, German Institute for Economic Research.
    14. Timothy Besley & Ian Preston, 2007. "Electoral Bias and Policy Choice: Theory and Evidence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(4), pages 1473-1510.
    15. Patrick Bolton & Gérard Roland, 1997. "The Breakup of Nations: A Political Economy Analysis," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1057-1090.
    16. Scott W. Desposato & John R. Petrocik, 2003. "The Variable Incumbency Advantage: New Voters, Redistricting, and the Personal Vote," American Journal of Political Science, John Wiley & Sons, vol. 47(1), pages 18-32, January.
    17. Kaisa Kotakorpi & Panu Poutvaara & Marko Tervio, 2013. "Returns to office in national and local politics," Discussion Papers 86, Aboa Centre for Economics.
    18. Henrik Jordahl & Che-Yuan Liang, 2010. "Merged municipalities, higher debt: on free-riding and the common pool problem in politics," Public Choice, Springer, vol. 143(1), pages 157-172, April.
    19. Olle Folke, 2014. "Shades Of Brown And Green: Party Effects In Proportional Election Systems," Journal of the European Economic Association, European Economic Association, vol. 12(5), pages 1361-1395, October.
    20. Brennan,Geoffrey & Buchanan,James M., 2006. "The Power to Tax," Cambridge Books, Cambridge University Press, number 9780521027922, September.
    21. Alberto Alesina & Reza Baqir & Caroline Hoxby, 2004. "Political Jurisdictions in Heterogeneous Communities," Journal of Political Economy, University of Chicago Press, vol. 112(2), pages 348-396, April.
    22. Ansolabehere, Stephen & Gerber, Alan & Snyder, Jim, 2002. "Equal Votes, Equal Money: Court-Ordered Redistricting and Public Expenditures in the American States," American Political Science Review, Cambridge University Press, vol. 96(4), pages 767-777, December.
    23. Carlo Perroni & Kimberley A. Scharf, 2001. "Tiebout with Politics: Capital Tax Competition and Constitutional Choices," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 68(1), pages 133-154.
    24. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    25. Lijphart, Arend, 1990. "The Political Consequences of Electoral Laws, 1945–85," American Political Science Review, Cambridge University Press, vol. 84(2), pages 481-496, June.
    26. Niklas Hanes & Magnus Wikström & Erik Wångmar, 2012. "Municipal Preferences for State-imposed Amalgamations: An Empirical Study Based on the Swedish Municipal Reform of 1952," Urban Studies, Urban Studies Journal Limited, vol. 49(12), pages 2733-2750, September.
    27. Ellingsen, Tore, 1998. "Externalities vs internalities: a model of political integration," Journal of Public Economics, Elsevier, vol. 68(2), pages 251-268, May.
    28. COX, GARY W. & ROSENBLUTH, FRANCES McCALL & THIES, MICHAEL F., 1999. "Electoral Reform and the Fate of Factions: The Case of Japan's Liberal Democratic Party," British Journal of Political Science, Cambridge University Press, vol. 29(1), pages 33-56, January.
    29. Timothy Besley & Anne Case, 1995. "Does Electoral Accountability Affect Economic Policy Choices? Evidence from Gubernatorial Term Limits," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(3), pages 769-798.
    30. Saarimaa, Tuukka & Tukiainen, Janne, 2016. "Local representation and strategic voting: Evidence from electoral boundary reforms," European Journal of Political Economy, Elsevier, vol. 41(C), pages 31-45.
    31. Howitt, Peter & Wintrobe, Ronald, 1995. "The political economy of inaction," Journal of Public Economics, Elsevier, vol. 56(3), pages 329-353, March.
    32. Saarimaa, Tuukka & Tukiainen, Janne, 2014. "I Don't Care to Belong to Any Club That Will Have Me as a Member: Empirical Analysis of Municipal Mergers," Political Science Research and Methods, Cambridge University Press, vol. 2(1), pages 97-117, April.
    33. Chen, Jowei & Rodden, Jonathan, 2013. "Unintentional Gerrymandering: Political Geography and Electoral Bias in Legislatures," Quarterly Journal of Political Science, now publishers, vol. 8(3), pages 239-269, June.
    34. David M. Brasington, 2003. "Snobbery, Racism, or Mutual Distaste: What Promotes and Hinders Cooperation in Local Public-Good Provision?," The Review of Economics and Statistics, MIT Press, vol. 85(4), pages 874-883, November.
    35. Tyrefors Hinnerich, Björn, 2009. "Do merging local governments free ride on their counterparts when facing boundary reform?," Journal of Public Economics, Elsevier, vol. 93(5-6), pages 721-728, June.
    36. Faruk Gul & Wolfgang Pesendorfer, 2010. "Strategic Redistricting," American Economic Review, American Economic Association, vol. 100(4), pages 1616-1641, September.
    37. Alessandra Casella, 2001. "The Role of Market Size in the Formation of Jurisdictions," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 68(1), pages 83-108.
    38. Claudio Ferraz & Frederico Finan, 2011. "Electoral Accountability and Corruption: Evidence from the Audits of Local Governments," American Economic Review, American Economic Association, vol. 101(4), pages 1274-1311, June.
    39. Gordon, Nora & Knight, Brian, 2009. "A spatial merger estimator with an application to school district consolidation," Journal of Public Economics, Elsevier, vol. 93(5-6), pages 752-765, June.
    40. Heléne Lundqvist, 2013. "Is it worth it? On the returns to holding political office," Working Papers 2013/14, Institut d'Economia de Barcelona (IEB).
    41. Ernesto Dal Bó & Martín A. Rossi, 2011. "Term Length and the Effort of Politicians," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 78(4), pages 1237-1263.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lapointe, Simon, 2018. "“Love thy neighbour”? The effect of income and language differences on votes for municipal secessions," Regional Science and Urban Economics, Elsevier, vol. 70(C), pages 229-245.
    2. Saarimaa, Tuukka & Tukiainen, Janne, 2015. "Common pool problems in voluntary municipal mergers," European Journal of Political Economy, Elsevier, vol. 38(C), pages 140-152.
    3. Blesse, Sebastian & Baskaran, Thushyanthan, 2016. "Do municipal mergers reduce costs? Evidence from a German federal state," Regional Science and Urban Economics, Elsevier, vol. 59(C), pages 54-74.
    4. Saarimaa, Tuukka & Tukiainen, Janne, 2016. "Local representation and strategic voting: Evidence from electoral boundary reforms," European Journal of Political Economy, Elsevier, vol. 41(C), pages 31-45.
    5. Simon Lapointe & Tuukka Saarimaa & Janne Tukiainen, 2018. "Effects of municipal mergers on voter turnout," Local Government Studies, Taylor & Francis Journals, vol. 44(4), pages 512-530, July.
    6. Blesse, Sebastian & Heinemann, Friedrich, 2020. "Citizens’ trade-offs in state merger decisions: Evidence from a randomized survey experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 180(C), pages 438-471.
    7. Kaisa Kotakorpi & Panu Poutvaara & Marko Tervio, 2013. "Returns to office in national and local politics," Discussion Papers 86, Aboa Centre for Economics.
    8. Peter H Egger & Marko Koethenbuerger & Gabriel Loumeau, 2022. "Local border reforms and economic activity," Journal of Economic Geography, Oxford University Press, vol. 22(1), pages 81-102.
    9. Roesel, Felix, 2017. "Do mergers of large local governments reduce expenditures? – Evidence from Germany using the synthetic control method," European Journal of Political Economy, Elsevier, vol. 50(C), pages 22-36.
    10. Harjunen, Oskari & Saarimaa, Tuukka & Tukiainen, Janne, 2021. "Political representation and effects of municipal mergers," Political Science Research and Methods, Cambridge University Press, vol. 9(1), pages 72-88, January.
    11. Sebastian Blesse & Felix Rösel, 2017. "Gebietsreformen: Hoffnungen, Risiken und Alternativen," ifo Working Paper Series 234, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    12. Hitoshi Saito & Haruaki Hirota & Hideo Yunoue & Miki Miyaki, 2023. "Do municipal mergers internalise spatial spillover effects? empirical evidence from Japanese municipalities," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 70(2), pages 379-406, April.

    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. Saarimaa, Tuukka & Tukiainen, Janne, 2015. "Common pool problems in voluntary municipal mergers," European Journal of Political Economy, Elsevier, vol. 38(C), pages 140-152.
    2. Harjunen, Oskari & Saarimaa, Tuukka & Tukiainen, Janne, 2021. "Political representation and effects of municipal mergers," Political Science Research and Methods, Cambridge University Press, vol. 9(1), pages 72-88, January.
    3. Tukiainen, Janne & Saarimaa, Tuukka & Hyytinen, Ari, 2013. "Seat competitiveness and redistricting: Evidence from voting on municipal mergers," Working Papers 38, VATT Institute for Economic Research.
    4. Blesse, Sebastian & Baskaran, Thushyanthan, 2016. "Do municipal mergers reduce costs? Evidence from a German federal state," Regional Science and Urban Economics, Elsevier, vol. 59(C), pages 54-74.
    5. Saarimaa, Tuukka & Tukiainen, Janne, 2016. "Local representation and strategic voting: Evidence from electoral boundary reforms," European Journal of Political Economy, Elsevier, vol. 41(C), pages 31-45.
    6. Blesse, Sebastian & Heinemann, Friedrich, 2020. "Citizens’ trade-offs in state merger decisions: Evidence from a randomized survey experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 180(C), pages 438-471.
    7. Benjamin Bruns & Ronny Freier & Abel Schumann, "undated". "Finding your right (or left) partner to merge," BDPEMS Working Papers 2015009, Berlin School of Economics.
    8. Ronny Freier & Benjamin Bruns & Abel Schumann, 2015. "Finding your right (or left) partner to merge," ERSA conference papers ersa15p188, European Regional Science Association.
    9. Benjamin Bruns & Ronny Freier & Abel Schumann, 2015. "Finding Your Right (or Left) Partner to Merge," Discussion Papers of DIW Berlin 1467, DIW Berlin, German Institute for Economic Research.
    10. Astrid Marie Jorde Sandsør & Torberg Falch & Bjarne Strøm, 2022. "Long‐run Effects of Local Government Mergers on Educational Attainment and Income," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 84(1), pages 185-213, February.
    11. Fiva, Jon H. & Halse, Askill H., 2016. "Local favoritism in at-large proportional representation systems," Journal of Public Economics, Elsevier, vol. 143(C), pages 15-26.
    12. Sebastian Blesse & Felix Rösel, 2017. "Gebietsreformen: Hoffnungen, Risiken und Alternativen," ifo Working Paper Series 234, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    13. Saarimaa, Tuukka & Tukiainen, Janne, 2012. "Politics in coalition formation of local governments," LSE Research Online Documents on Economics 58528, London School of Economics and Political Science, LSE Library.
    14. Lapointe, Simon, 2018. "“Love thy neighbour”? The effect of income and language differences on votes for municipal secessions," Regional Science and Urban Economics, Elsevier, vol. 70(C), pages 229-245.
    15. Saarimaa, Tuukka & Tukiainen, Janne, 2016. "Local representation and strategic voting: Evidence from electoral boundary reforms," European Journal of Political Economy, Elsevier, vol. 41(C), pages 31-45.
    16. Libman, Alexander Mikhailovich, 2009. "Эндогенные Границы И Распределение Власти В Федерациях И Международных Сообществах [ENDOGENOUS BOUNDARIES AND DISTRIBUTION OF POWER In the Federation]," MPRA Paper 16473, University Library of Munich, Germany.
    17. Edoardo Di Porto & Angela Parenti & Sonia Paty & Zineb Abidi, 2017. "Local government cooperation at work: a control function approach," Journal of Economic Geography, Oxford University Press, vol. 17(2), pages 435-463.
    18. Clémence Tricaud, 2019. "Better alone? Evidence on the costs of intermunicipal cooperation," Economics Working Paper from Condorcet Center for political Economy at CREM-CNRS 2019-12-ccr, Condorcet Center for political Economy.
    19. Björn Kauder, 2016. "Incorporation of municipalities and population growth: A propensity score matching approach," Papers in Regional Science, Wiley Blackwell, vol. 95(3), pages 539-554, August.
    20. Ricardo Dahis & Christiane Szerman, 2023. "Decentralizing Development: Evidence from Government Splits," Monash Economics Working Papers 2023-18, Monash University, Department of Economics.

    More about this item

    Keywords

    Electoral vulnerability; Local politics; Municipal mergers;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

    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:pubeco:v:120:y:2014:i:c:p:193-204. 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/inca/505578 .

    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.