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Political fragmentation, party ideology and public expenditures

Author

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  • Benoît Maux
  • Yvon Rocaboy

    ()

  • Timothy Goodspeed

Abstract

In this paper we propose an original model of competition for effective political power between majority and opposition coalitions. The model indicates that the electoral margin of the majority and the fragmentation of both coalitions are key variables that determine their effective political power. We estimate the model in the case of the French départements. Our econometric results support the model and show that the per capita social expenditures in the French départements depend on the effective political power of the majority.
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Suggested Citation

  • Benoît Maux & Yvon Rocaboy & Timothy Goodspeed, 2011. "Political fragmentation, party ideology and public expenditures," Public Choice, Springer, vol. 147(1), pages 43-67, April.
  • Handle: RePEc:kap:pubcho:v:147:y:2011:i:1:p:43-67
    DOI: 10.1007/s11127-010-9603-z
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    References listed on IDEAS

    as
    1. Perotti, Roberto & Kontopoulos, Yianos, 2002. "Fragmented fiscal policy," Journal of Public Economics, Elsevier, vol. 86(2), pages 191-222, November.
    2. Plümper, Thomas & Troeger, Vera E., 2007. "Efficient Estimation of Time-Invariant and Rarely Changing Variables in Finite Sample Panel Analyses with Unit Fixed Effects," Political Analysis, Cambridge University Press, vol. 15(02), pages 124-139, March.
    3. Hausman, Jerry A & Taylor, William E, 1981. "Panel Data and Unobservable Individual Effects," Econometrica, Econometric Society, vol. 49(6), pages 1377-1398, November.
    4. Volkerink, Bjorn & De Haan, Jakob, 2001. "Fragmented Government Effects on Fiscal Policy: New Evidence," Public Choice, Springer, vol. 109(3-4), pages 221-242, December.
    5. Poterba, James M, 1994. "State Responses to Fiscal Crises: The Effects of Budgetary Institutions and Politics," Journal of Political Economy, University of Chicago Press, vol. 102(4), pages 799-821, August.
    6. Cameron,A. Colin & Trivedi,Pravin K., 2008. "Microeconometrics," Cambridge Books, Cambridge University Press, number 9787111235767, April.
    7. Robert Breunig & Yvon Rocaboy, 2008. "Per-capita public expenditures and population size: a non-parametric analysis using French data," Public Choice, Springer, vol. 136(3), pages 429-445, September.
    8. Stephen Goldfeld & Richard Quandt, 1973. "The Estimation of Structural Shifts by Switching Regressions," NBER Chapters,in: Annals of Economic and Social Measurement, Volume 2, number 4, pages 475-485 National Bureau of Economic Research, Inc.
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    Citations

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    Cited by:

    1. Markus Leibrecht & Johann Scharler, 2015. "Government Size and Business Cycle Volatility: How Important are Credit Constraints?," Economica, London School of Economics and Political Science, vol. 82(326), pages 201-221, April.
    2. Baskaran, Thushyanthan, 2013. "Coalition governments, cabinet size, and the common pool problem: Evidence from the German states," European Journal of Political Economy, Elsevier, vol. 32(C), pages 356-376.
    3. Niklas Potrafke, 2012. "Is German domestic social policy politically controversial?," Public Choice, Springer, vol. 153(3), pages 393-418, December.
    4. Le Maux, Benoit & Rocaboy, Yvon, 2012. "A simple microfoundation for the utilization of fragmentation indexes to measure the performance of a team," Economics Letters, Elsevier, vol. 116(3), pages 491-493.
    5. Benoît LE MAUX & Kristýna DOSTÁLOVÁ & Antti MOISIO, 2017. "Do political parties matter? Endogenous fragmentation, partisanship, and local public expenditures in Finland," Economics Working Paper from Condorcet Center for political Economy at CREM-CNRS 2017-02-ccr, Condorcet Center for political Economy.
    6. Maciej Turala & Justyna Danielewicz, 2013. "Political Fragmentation And External Sources Of Funding In Local Governments. Do Power Struggles Matter?," Romanian Journal of Regional Science, Romanian Regional Science Association, vol. 7(1), pages 69-80, JUNE.
    7. Benoît LE MAUX & Kristýna DOSTÁLOVÁ & Fabio PADOVANO, 2017. "Ideology and Public Policies: A Quasi-Experimental Test of the Hypothesis that Left-Wing Governments Spend More," Economics Working Paper from Condorcet Center for political Economy at CREM-CNRS 2017-01-ccr, Condorcet Center for political Economy.
    8. repec:ipf:psejou:v:41:y:2017:i:3:p:359-377 is not listed on IDEAS
    9. Christine Fauvelle-Aymar, 2014. "The welfare state, migration, and voting rights," Public Choice, Springer, vol. 159(1), pages 105-120, April.
    10. B. Buylen & J. Christiaens, 2013. "Politics by numbers? An exploration of councillors’ apparent use of financial information during the budget discussion in Flemish municipal councils," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 13/841, Ghent University, Faculty of Economics and Business Administration.
    11. Osterloh, Steffen & Debus, Marc, 2012. "Partisan politics in corporate taxation," European Journal of Political Economy, Elsevier, vol. 28(2), pages 192-207.
    12. Benoît Le Maux & Kristýna Dostálová & Fabio Padovano, 2017. "Ideology or Voters? A Quasi-Experimental Test of Why Left-Wing Governments Spend More," Economics Working Paper from Condorcet Center for political Economy at CREM-CNRS 2017-05-ccr, Condorcet Center for political Economy.
    13. Benoît Le Maux & Yvon Rocaboy, 2016. "Competition in fragmentation among political coalitions: theory and evidence," Public Choice, Springer, vol. 167(1), pages 67-94, April.

    More about this item

    Keywords

    Political fragmentation; Local public services; Party ideology; Herfindahl-Hirschman index; C35; D70; H40; H72;

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

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