Government Spending and Legislative Organization: Quasi-experimental evidence from Germany
Publikation: Working paper › Forskning
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Government Spending and Legislative Organization : Quasi-experimental evidence from Germany. / Egger, Peter; Köthenbürger, Marko.
Department of Economics, University of Copenhagen, 2010.Publikation: Working paper › Forskning
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RIS
TY - UNPB
T1 - Government Spending and Legislative Organization
T2 - Quasi-experimental evidence from Germany
AU - Egger, Peter
AU - Köthenbürger, Marko
N1 - JEL classification: D7, H7, C2
PY - 2010
Y1 - 2010
N2 - This paper presents empirical evidence of a positive effect of council size on government spending using a data set of 2,056 municipalities in the German state of Bavaria over a period of 21 years. We apply a regression discontinuity design to avoid an endogeneity bias. In particular, we exploit discontinuities in the legal rule that relates population size of a municipality to council size to identify a causal relationship between council size and public spending, and find a robust positive impact of council size on spending. Moreover, we show that municipalities primarily adjust current expenditure in response to a rise in council size.
AB - This paper presents empirical evidence of a positive effect of council size on government spending using a data set of 2,056 municipalities in the German state of Bavaria over a period of 21 years. We apply a regression discontinuity design to avoid an endogeneity bias. In particular, we exploit discontinuities in the legal rule that relates population size of a municipality to council size to identify a causal relationship between council size and public spending, and find a robust positive impact of council size on spending. Moreover, we show that municipalities primarily adjust current expenditure in response to a rise in council size.
M3 - Working paper
BT - Government Spending and Legislative Organization
PB - Department of Economics, University of Copenhagen
ER -
ID: 21858919