Distaste for Centralization: Evidence from a Quasi-Natural Experiment in Switzerland

Sarah Flèche

CEP Discussion Papers from Centre for Economic Performance, LSE

Abstract: Do people care about the degree of centralization? This paper examines the effects of local centralization reforms on individuals' well-being using a quasi-natural experiment in Switzerland. The results reveal that centralization has a causal negative impact on individuals' life satisfaction. Consistent with the concept of procedural utility, centralization reduces individuals' feeling of having political influence and interest in politics. In contrast, there are no impacts on individuals' satisfaction with local governments' performance. These findings shed new light on what people value in decentralized institutions.

Keywords: Decentralization; life satisfaction; public spending; procedural utility (search for similar items in EconPapers)
JEL-codes: H11 H40 I31 (search for similar items in EconPapers)
Date: 2015-11
New Economics Papers: this item is included in nep-hap
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Working Paper: Distaste for centralization: evidence from a quasi-natural experiment in Switzerland (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:cep:cepdps:dp1383

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