Do politicians gratify core supporters? Evidence from a discretionary grant program

Björn Kauder, Kauder Björn, Niklas Potrafke and Markus Reischmann ()
Authors registered in the RePEc Author Service: Björn Kauder

VfS Annual Conference 2016 (Augsburg): Demographic Change from Verein für Socialpolitik / German Economic Association

Abstract: We investigate whether politicians award intergovernmental grants to core supporters. Our new dataset contains information on discretionary project grants from a German state government to municipalities over the period 2008-2011. The results show that discretionary grants were awarded to municipalities with many core supporters of the incumbent state government. Discretionary grants per capita increased by about 1.4 percent when the vote share of the incumbent party in the state election increased by one percentage point. We propose to trim discretionary project grants to the benefit of formula-based grants.

JEL-codes: D72 H72 H77 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-cdm, nep-pbe and nep-pol
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (30)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc16:145509

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