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Do direct elections matter? Quasi-experimental evidence from Germany

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  • Gaebler, Stefanie
  • Roesel, Felix

Abstract

We estimate the causal effect of direct elections on the economic performance of politicians. Candidates running in direct elections to head local governments in the German state of Brandenburg need an absolute majority, and votes for the winner must represent at least 15% of eligible voters. If the quorum is not reached, direct elections are suspended, and local councils appoint the head of government. We examine election outcomes around the quorum, where the form of government is arguably exogenous. Event study results show that the public employment service becomes somewhat more effective under directly elected politicians. However, directly elected politicians do not seem to attract more businesses or expedite administrative acts.

Suggested Citation

  • Gaebler, Stefanie & Roesel, Felix, 2019. "Do direct elections matter? Quasi-experimental evidence from Germany," Munich Reprints in Economics 78262, University of Munich, Department of Economics.
    • Handle: RePEc:lmu:muenar:78262
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    Cited by:

    1. Geschwind, Stephan & Roesel, Felix, 2022. "Taxation under direct democracy," Journal of Economic Behavior & Organization, Elsevier, vol. 200(C), pages 536-554.
    2. Florian Dorn, 2021. "Elections and Government Efficiency," ifo Working Paper Series 363, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.

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    More about this item

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • R50 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - General

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