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How Do Institutions Shape Policy Making? The Transition from Parliamentarism to Presidentialism in Iitalian Local Governments

In: Italian Institutional Reforms: A Public Choice Perspective

Author

Listed:
  • Barbara Veronese

    (Ofcom, Riverside House)

Abstract

We study the effects of a transition from a parliamentarian to a presidential system on electoral and fiscal policy outcomes. We test the hypothesis that this type of institutional change translates into increased differentiation between the executive and the legislative power and that this has an impact on policy choices. Using pre- and post-reform panel data on elections and fiscal policy from Italian local governments, we exploit a unique natural experiment to provide empirical evidence on the increase in differentiation and to measure the impact of political change on the composition of public spending. We find that the reform fosters political differentiation. Furthermore, political changes are statistically significant determinants of expenditure in the three largest fields of public finance intervention. Key words: Parliamentarism, presidentialism, local elections.

Suggested Citation

  • Barbara Veronese, 2008. "How Do Institutions Shape Policy Making? The Transition from Parliamentarism to Presidentialism in Iitalian Local Governments," Springer Books, in: Fabio Padovano & Roberto Ricciuti (ed.), Italian Institutional Reforms: A Public Choice Perspective, chapter 0, pages 117-138, Springer.
    • Handle: RePEc:spr:sprchp:978-0-387-72141-5_7
    DOI: 10.1007/978-0-387-72141-5_7
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    Cited by:

    1. Fabio Padovano & Roberto Ricciuti, 2008. "The Political Competition-Economic Performance Puzzle: Evidence from the OECD Countries and the Italian Regions," CESifo Working Paper Series 2411, CESifo.
    2. Lorenz Blume & Thomas Döring & Stefan Voigt, 2011. "Fiscal Effects of Reforming Local Constitutions," Urban Studies, Urban Studies Journal Limited, vol. 48(10), pages 2123-2140, August.
    3. Fabio Padovano & Roberto Ricciuti, 2009. "Political competition and economic performance: evidence from the Italian regions," Public Choice, Springer, vol. 138(3), pages 263-277, March.

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