EconPapers    
Economics at your fingertips  
 

Government Spending and Legislative Organization: Quasi-experimental evidence from Germany

Peter Egger () and Marko Koethenbuerger

No 2010-09, EPRU Working Paper Series from Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics

Abstract: This paper presents empirical evidence of a positive effect of council size on government spending using a data set of 2,056 municipalities in the German state of Bavaria over a period of 21 years. We apply a regression discontinuity design to avoid an endogeneity bias. In particular, we exploit discontinuities in the legal rule that relates population size of a municipality to council size to identify a causal relationship between council size and public spending, and find a robust positive impact of council size on spending. Moreover, we show that municipalities primarily adjust current expenditure in response to a rise in council size.

Keywords: Legislative organization; Regression-discontinuity design; Government spending; Mayor-council system (search for similar items in EconPapers)
JEL-codes: D7 H7 C2 (search for similar items in EconPapers)
Pages: 14 pages
Date: 2010-08
New Economics Papers: this item is included in nep-cdm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (64) Track citations by RSS feed

Downloads: (external link)
http://web.econ.ku.dk/eprn_epru/Workings_Papers/wp-10-09.pdf (application/pdf)

Related works:
Journal Article: Government Spending and Legislative Organization: Quasi-experimental Evidence from Germany (2010) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kud:epruwp:10-09

Access Statistics for this paper

More papers in EPRU Working Paper Series from Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics Øster Farimagsgade 5, Building 26, DK-1353 Copenhagen K., Denmark. Contact information at EDIRC.
Bibliographic data for series maintained by Thomas Hoffmann ().

 
Page updated 2020-01-26
Handle: RePEc:kud:epruwp:10-09