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Disciplining Ballots? – (Un-intended) Effects of Voter Engagement on the Fiscal Sustainability of Swiss Cantons

Yannick Bury, Lars Feld and Ekkehard Köhler

No 10759, CESifo Working Paper Series from CESifo

Abstract: We test whether the proactive use of instruments of direct democracy by voters can help to explain fiscal sustainability of 25 Swiss cantons. Using data of all cantonal popular votes since 1977, our results show that the fiscal reaction of cantonal governments to an increase in the debt to GDP ratio of a canton is stronger, the more cantonal voters actively made use of their direct democratic rights in the previous year.

Keywords: direct democracy; political process; fiscal policy (search for similar items in EconPapers)
JEL-codes: D72 H11 H50 (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-cdm, nep-eec and nep-pol
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_10759

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