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Do Parties Matter for Economic Outcomes? A Replication Study of Pettersson-Lidbom (Journal of the European Economic Association, 2008)

Author

Listed:
  • Korpi, Martin
  • Lakomaa, Erik

Abstract

In an important and much cited study, Pettersson-Lidbom (2008) identifies significant left-wing majority coalition effects on economic outcomes for Swedish local governments, 1974-1994. We first replicate the original study and then extend the original research by applying Pettersson-Lidbom's empirical model using new and more detailed coalition data, compiled from registry books and register data recently made available from Statistics Sweden. The data allows us to test for left party policy outcomes including previously undefined coalitions, such as left minority coalitions and coalitions with local or emerging parties. We find that Pettersson-Lidbom's previous results hold and are even strengthened using the new data and some alternative specifications, but the results are heavily dependent on the definition of left-wing rule. When including left wing minority coalitions and left-wing coalitions including the Green Party, previous significant differences between the left and right are no longer discernable.

Suggested Citation

  • Korpi, Martin & Lakomaa, Erik, 2026. "Do Parties Matter for Economic Outcomes? A Replication Study of Pettersson-Lidbom (Journal of the European Economic Association, 2008)," Journal of Comments and Replications in Economics (JCRE), ZBW - Leibniz Information Centre for Economics, vol. 5, pages 1-8.
    • Handle: RePEc:zbw:jcreco:337527
    DOI: 10.18718/81781.52
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    References listed on IDEAS

    as
    1. Freier, Ronny & Odendahl, Christian, 2015. "Do parties matter? Estimating the effect of political power in multi-party systems," European Economic Review, Elsevier, vol. 80(C), pages 310-328.
    2. Fernando Ferreira & Joseph Gyourko, 2009. "Do Political Parties Matter? Evidence from U.S. Cities," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(1), pages 399-422.
    3. Sebastian Calonico & Matias D. Cattaneo & Max H. Farrell & Rocío Titiunik, 2019. "Regression Discontinuity Designs Using Covariates," The Review of Economics and Statistics, MIT Press, vol. 101(3), pages 442-451, July.
    4. Sebastian Calonico & Matias D. Cattaneo & Rocio Titiunik, 2014. "Robust Nonparametric Confidence Intervals for Regression‐Discontinuity Designs," Econometrica, Econometric Society, vol. 82, pages 2295-2326, November.
    5. Olle Folke, 2014. "Shades Of Brown And Green: Party Effects In Proportional Election Systems," Journal of the European Economic Association, European Economic Association, vol. 12(5), pages 1361-1395, October.
    6. Per Pettersson-Lidbom, 2008. "Do Parties Matter for Economic Outcomes? A Regression-Discontinuity Approach," Journal of the European Economic Association, MIT Press, vol. 6(5), pages 1037-1056, September.
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    Keywords

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    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

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