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Political fragmentation, Party ideology and Public expenditures

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Abstract

In this paper we propose an original model of competition for effective political power between majority and opposition coalitions. The model indicates that the electoral margin of the majority and the fragmentation of both coalitions are key variables that determine their effective political power. We estimate the model in the case of the French départements. Our econometric results support the model and show that the per capita social expenditures in the French départements depend on the effective political power of the majority.

Suggested Citation

  • Timothy J. Goodspeed & Yvon Rocaboy & Benoit Le Maux, 2011. "Political fragmentation, Party ideology and Public expenditures," Economics Working Paper Archive at Hunter College 435, Hunter College Department of Economics.
    • Handle: RePEc:htr:hcecon:435
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    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

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