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Political fragmentation, Party ideology and Public expenditures

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.

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File URL: http://econ.hunter.cuny.edu/wp-content/uploads/sites/6/RePEc/papers/Rocaboy_lemaux_goodspeed_pol_frag.pdf
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Paper provided by Hunter College Department of Economics in its series Economics Working Paper Archive at Hunter College with number 435.

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Date of creation: 2011
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Handle: RePEc:htr:hcecon:435
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  1. Volkerink, Bjorn & De Haan, Jakob, 2001. " Fragmented Government Effects on Fiscal Policy: New Evidence," Public Choice, Springer, vol. 109(3-4), pages 221-42, December.
  2. Hausman, Jerry A & Taylor, William E, 1981. "Panel Data and Unobservable Individual Effects," Econometrica, Econometric Society, vol. 49(6), pages 1377-98, November.
  3. repec:cup:cbooks:9780521848053 is not listed on IDEAS
  4. Robert Breunig & Yvon Rocaboy, 2008. "Per-capita public expenditures and population size: a non-parametric analysis using French data," Public Choice, Springer, vol. 136(3), pages 429-445, September.
  5. Perotti, Roberto & Kontopoulos, Yianos, 2002. "Fragmented fiscal policy," Journal of Public Economics, Elsevier, vol. 86(2), pages 191-222, November.
  6. Stephen Goldfeld & Richard Quandt, 1973. "The Estimation of Structural Shifts by Switching Regressions," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 2, number 4, pages 475-485 National Bureau of Economic Research, Inc.
  7. James M. Poterba, 1993. "State Responses to Fiscal Crisis: The Effects of Budgetary Institutionsand Politics," NBER Working Papers 4375, National Bureau of Economic Research, Inc.
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