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Trading Interests: Legislature Size, Constituency Size and Government Spending in a Panel of Countries

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  • Roberto Ricciuti

    (Università di Siena)

Abstract

In this paper we study the relationship between legislature size and constituency size with respect to government spending. According to the theory, legislature size has an indefinite effect on government spending because logrolling and transaction costs may have cancelling effects. In turn, smaller constituency size is predicted to decrease government spending, because of homogeneity of interests and low monitoring costs. We use a panel of 23 OECD countries over the period 1975-1996 controlling for some institutional features that differ among these countries. We find that legislature size outperforms constituency size in explaining government spending. Consequences for lobbies’ behavior are drawn.

Suggested Citation

  • Roberto Ricciuti, 2003. "Trading Interests: Legislature Size, Constituency Size and Government Spending in a Panel of Countries," Rivista di Politica Economica, SIPI Spa, vol. 93(1), pages 315-315, January-F.
  • Handle: RePEc:rpo:ripoec:v:93:y:2003:i:1:p:315-
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    Citations

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    Cited by:

    1. Germà Bel & Ringa Raudla & Miguel Rodrigues & António F. Tavares, 2018. "These rules are made for spending: testing and extending the law of 1/n," Public Choice, Springer, vol. 174(1), pages 41-60, January.
    2. Alptekin, Huzeyfe & Freire, Danilo & Mignozzetti, Umberto Guarnier & Roman, Catarina, 2020. "The Effect of Legislature Size on Public Spending: A Meta-Analysis," SocArXiv xf7wp, Center for Open Science.
    3. De Santo, Alessia & Le Maux, Benoît, 2023. "On the optimal size of legislatures: An illustrated literature review," European Journal of Political Economy, Elsevier, vol. 77(C).

    More about this item

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government

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