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Voters prefer more qualified mayors, but does it matter for public finances? Evidence for Germany

Author

Listed:
  • Ronny Freier

    (DIW Berlin
    FU Berlin)

  • Sebastian Thomasius

    (FU Berlin
    German Federal Ministry of Finance)

Abstract

This paper studies the importance of politicians’ qualification, in terms of education and experience, for fiscal outcomes. The analysis is based on a large panel for 2031 German municipalities for which we have collected information on municipal budgets as well as the election results and qualification levels of mayoral candidates. We principally use a regression discontinuity design focusing on close elections to estimate causal effects. We find that mayors with prior experience in office have a tendency to reduce the level of local public debt, lower total municipal expenditures and decrease the local taxes, even though these results are only significant in some specifications. In contrast, the education level of the mayor exerts no significant effects on the overall fiscal performance of the municipality. The results are partly surprising as both education and experience are shown to matter greatly in the electoral success of mayoral candidates.

Suggested Citation

  • Ronny Freier & Sebastian Thomasius, 2016. "Voters prefer more qualified mayors, but does it matter for public finances? Evidence for Germany," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 23(5), pages 875-910, October.
    • Handle: RePEc:kap:itaxpf:v:23:y:2016:i:5:d:10.1007_s10797-015-9382-z
    DOI: 10.1007/s10797-015-9382-z
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    More about this item

    Keywords

    Mayoral elections; Regression discontinuity design; Politician’s education and experience; Fiscal outcomes;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

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