Legend of the Pork Barrel? The Causal Effect of Legislature Size on Public Spending
Carolin Holzmann and
Orlando Zaddach
FinanzArchiv: Public Finance Analysis, 2019, vol. 75, issue 1, 39-58
Abstract:
This paper investigates pork-barrel spending, the inefficient effect of legislature size on public spending, in at-large electoral systems. Using a rich panel-data set on German municipalities whose councils are elected at large, we employ a regression discontinuity design to estimate the causal effect of legislature size of public spending. The empirical results indicate that the pork-barrel effect in at-large electoral systems is of very small economic magnitude. This finding is in line with the theoretical prediction of a zero effect, but is in sharp contrast to previously published estimates in the literature that commonly support a positive pork-barrel spending effect.
Keywords: legislature size; public spending; pork-barrel spending; 1=n rule (search for similar items in EconPapers)
JEL-codes: H11 H41 H72 (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:mhr:finarc:urn:doi:10.1628/fa-2018-0024
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DOI: 10.1628/fa-2018-0024
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