You shall not build! (until tomorrow) [:] Electoral cycles and housing policies in Germany
Thorsten Martin ()
MPRA Paper from University Library of Munich, Germany
This paper investigates whether local politicians adjust their approval of housing licenses during election times in Germany. For my research, I use a balanced Panel of 4,983 West German municipalities from 2002 to 2010. Due to the timing of local elections in Germany, I can disentangle the election effect from common time effects. My results suggest a decrease in new construction approvals for residential housing areas during election years of around 11 % evaluated at the mean, and an increase of similar magnitude in the years following the election. Furthermore, I am able to show that the decrease during election times is associated with the share of homeowners in a municipality. Hence, my research adds to the literature on political business cycles as well as to the existing literature on homevoters and their potential effect on housing policies during election times.
Keywords: Urban development policies; land use regulations; homevoter; political business cycle; housing policies (search for similar items in EconPapers)
JEL-codes: D72 H79 R31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cdm, nep-eur, nep-pol and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:78998
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