Ideology or voters? A quasi-experimental test of why left-wing governments spend more
Benoît Le Maux (),
Kristýna Dostálová () and
Fabio Padovano ()
Additional contact information
Benoît Le Maux: University of Rennes 1, CREM-CNRS
Kristýna Dostálová: University of Rennes 1, CREM-CNRS
Public Choice, 2020, vol. 182, issue 1, No 2, 17-48
Abstract This paper analyzes and compares the explanatory powers of the two main theories describing the processes that lead left-wing governments to spend more than right-wing ones: (1) a demand-driven process whereby voters demand more expenditures and thus vote for the left; (2) a supply-driven process whereby governments in office follow their preferences/ideologies at the cost of deviating from constituents’ demands (party preference hypothesis). We provide a model that identifies the predictions associated with those hypotheses and show that they generate a problem of observational equivalence in empirical analysis. We solve the problem by applying two identification strategies, Regression Discontinuity Design and Propensity Score Matching. Using data from the French local public sector, our estimates provide mixed evidence of supply-side effects. Left-wing governments facing socioeconomic situations analogous to right-wing ones seem not to spend more on social services, but they do appear to spend more on other types of expenditure programs.
Keywords: Public services; Party ideology; Redistribution; Supply effects; Selection bias (search for similar items in EconPapers)
JEL-codes: H72 H40 D72 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s11127-019-00666-8 Abstract (text/html)
Access to full text is restricted to subscribers.
Working Paper: Ideology or Voters? A Quasi-Experimental Test of Why Left-Wing Governments Spend More (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:kap:pubcho:v:182:y:2020:i:1:d:10.1007_s11127-019-00666-8
Ordering information: This journal article can be ordered from
http://www.springer. ... ce/journal/11127/PS2
Access Statistics for this article
Public Choice is currently edited by WIlliam F. Shughart II
More articles in Public Choice from Springer
Bibliographic data for series maintained by Sonal Shukla ().