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Information and targeted spending

Author

Listed:
  • Eguia, Jon X.

    (Department of Economics, Michigan State University)

  • Nicolo, Antonio

    (Department of Economics, University of Padua and Department of Economics, University of Manchester)

Abstract

We present an electoral theory on the public provision of local public goods to an imperfectly informed electorate. We show that electoral incentives lead to greater spending if the electorate is not well informed. A more informed electorate induces candidates to target funds only to specific constituencies, which can reduce aggregate welfare.

Suggested Citation

  • Eguia, Jon X. & Nicolo, Antonio, 2019. "Information and targeted spending," Theoretical Economics, Econometric Society, vol. 14(2), May.
  • Handle: RePEc:the:publsh:2508
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Esslinger, Christoph & Boyer, Pierre, 2015. "Public debt and the political economy of reforms," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113107, Verein für Socialpolitik / German Economic Association.
    2. Balart, Pau & Casas, Agustin & Troumpounis, Orestis, 2022. "Technological change, campaign spending and polarization," Journal of Public Economics, Elsevier, vol. 211(C).
    3. Jacopo Bizzotto & Benjamin Solow, 2019. "Electoral Competition with Strategic Disclosure," Games, MDPI, vol. 10(3), pages 1-17, July.

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    More about this item

    Keywords

    Local public goods; information; elections; targeted spending;
    All these keywords.

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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