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Elected or Appointed? How the Nomination Scheme of the City Manager Influences the Effects of Government Fragmentation

  • Garmann, Sebastian
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    Empirical work on the causal effect of government fragmentation finds diversified results. This might be explained by the fact that studies typically are settled in different institutional environments. To assess in how far the political system might shape the effects of fragmentation, this paper measures the causal effect of a change in the nomination scheme of the city manager on the council size effect. I utilize a combination of a Regression Discontinuity Design with a Difference-in-Difference Approach applied to a large panel data set of German municipalities. The paper finds that when the manager is appointed by the council, there is no significant council size effect, while there is negative effect when the manager is elected by the voters. This indicates that the political system indeed matters.

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    File URL: http://econstor.eu/bitstream/10419/79892/1/VfS_2013_pid_296.pdf
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    Paper provided by Verein für Socialpolitik / German Economic Association in its series Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order with number 79892.

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    Date of creation: 2013
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    Handle: RePEc:zbw:vfsc13:79892
    Contact details of provider: Web page: http://www.socialpolitik.org/Email:


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    1. Gagliarducci, Stefano & Nannicini, Tommaso & Naticchioni, Paolo, 2008. "Electoral Rules and Politicians’ Behavior: A Micro Test," IZA Discussion Papers 3348, Institute for the Study of Labor (IZA).
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    13. Peter Egger & Marko Koethenbuerger, 2010. "Government Spending and Legislative Organization: Quasi-experimental evidence from Germany," EPRU Working Paper Series 2010-09, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
    14. Perotti, Roberto & Kontopoulos, Yianos, 2002. "Fragmented fiscal policy," Journal of Public Economics, Elsevier, vol. 86(2), pages 191-222, November.
    15. Stephen Coate & Brian Knight, 2011. "Government Form and Public Spending: Theory and Evidence from US Municipalities," American Economic Journal: Economic Policy, American Economic Association, vol. 3(3), pages 82-112, August.
    16. Lynn MacDonald, 2008. "The impact of government structure on local public expenditures," Public Choice, Springer, vol. 136(3), pages 457-473, September.
    17. 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 642-64, August.
    18. 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.
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