Government Spending and Legislative Organization: Quasi-Experimental Evidence from Germany
2010 ◽
Vol 2
(4)
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pp. 200-212
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Keyword(s):
This paper presents empirical evidence of a positive effect of council size on government spending using a dataset 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 relate population size of a municipality in order 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. (JEL D72, H72, R51)
2019 ◽
Vol 46
(7)
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pp. 1365-1379
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2017 ◽
Vol 51
(3)
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pp. 304-340
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2021 ◽
2018 ◽
Vol 10
(4)
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pp. 378-407
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2019 ◽
Vol 8
(4)
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pp. 630-645
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2016 ◽
Vol 3
(1)
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pp. 51