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Legend of the Pork Barrel? The Causal Effect of Legislature Size on Public Spending

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  • Carolin Holzmann
  • Orlando Zaddach

Abstract

This paper investigates pork-barrel spending, the inefficient effect of legislature size on public spending, in at-large electoral systems. Using a rich panel-data set on German municipalities whose councils are elected at large, we employ a regression discontinuity design to estimate the causal effect of legislature size of public spending. The empirical results indicate that the pork-barrel effect in at-large electoral systems is of very small economic magnitude. This finding is in line with the theoretical prediction of a zero effect, but is in sharp contrast to previously published estimates in the literature that commonly support a positive pork-barrel spending effect.

Suggested Citation

  • Carolin Holzmann & Orlando Zaddach, 2019. "Legend of the Pork Barrel? The Causal Effect of Legislature Size on Public Spending," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 75(1), pages 39-58.
    • Handle: RePEc:mhr:finarc:urn:doi:10.1628/fa-2018-0024
    DOI: 10.1628/fa-2018-0024
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    More about this item

    Keywords

    legislature size; public spending; pork-barrel spending; 1=n rule;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

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