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Legislature and Constituency Size in Italian Regions: Forecasting the Effects of a Reform

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  • Nadia Fiorino
  • Roberto Ricciuti

Abstract

In this paper we analyze the effect of different legislature and constituency size on per capita regional expenditure in Italy. According to the theory, legislature size has an indefinite effect on government spending because logrolling and transaction costs may have canceling effects. In turn, smaller constituency size is predicted to decrease government spending, because of homogeneity of interests and low monitoring costs. We find a large and significantly positive effect of the number of legislators and a negative effect for constituency size. We use these findings to forecast the effects of the increase in the number of legislators that are occurring in some regions

Suggested Citation

  • Nadia Fiorino & Roberto Ricciuti, 2005. "Legislature and Constituency Size in Italian Regions: Forecasting the Effects of a Reform," Department of Economics University of Siena 448, Department of Economics, University of Siena.
  • Handle: RePEc:usi:wpaper:448
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    References listed on IDEAS

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    1. Gilligan, Thomas W & Matsusaka, John G, 1995. "Deviations from Constituent Interests: The Role of Legislative Structure and Political Parties in the States," Economic Inquiry, Western Economic Association International, vol. 33(3), pages 383-401, July.
    2. Mark Thornton & Marc Ulrich, 1999. "Constituency Size and Government Spending," Public Finance Review, , vol. 27(6), pages 588-598, November.
    3. Marilyn Young & Michael Reksulak & William F. Shughart, 2001. "The Political Economy of the IRS," Economics and Politics, Wiley Blackwell, vol. 13(2), pages 201-220, July.
    4. Bradbury, John Charles & Crain, W. Mark, 2001. "Legislative organization and government spending: cross-country evidence," Journal of Public Economics, Elsevier, vol. 82(3), pages 309-325, December.
    5. Weingast, Barry R & Shepsle, Kenneth A & Johnsen, Christopher, 1981. "The Political Economy of Benefits and Costs: A Neoclassical Approach to Distributive Politics," Journal of Political Economy, University of Chicago Press, vol. 89(4), pages 642-664, August.
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    More about this item

    Keywords

    Legislature size; constituency size; regional expenditure;
    All these keywords.

    JEL classification:

    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects

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