 The value of a party: Local politics and the allocation of intergovernmental transfersMatthias Quinckhardt European Journal of Political Economy, 2023, vol. 80, issue C Abstract: This paper investigates how party connections affect the ability of local politicians to obtain central government funds for their municipality. Using a novel data set for mayoral elections in Germany spanning 2322 municipalities in eight states in the years 2000 to 2008 and regression discontinuity design, I find that party alignment between a local mayor and the state government increases transfers to a municipality by 20% per year. Such favoritism has been interpreted as a sign of partisanship and blamed on central governments which use public funds for partisan purposes. I show that local political conditions, such as reelection incentives and information transmission can partly account for the alignment effect. Taken together, the results provide alternative channels for the interpretation of alignment effects. Keywords: Alignment bias; Regression discontinuity; Public finance; Intergovernmental transfers (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:poleco:v:80:y:2023:i:c:s0176268023001143 DOI: 10.1016/j.ejpoleco.2023.102470 Access Statistics for this article European Journal of Political Economy is currently edited by J. De Haan, A. L. Hillman and H. W. Ursprung More articles in European Journal of Political Economy from Elsevier |
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