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Fueling the party machine: Evidence from Greece during Metapolitefsi

Author

Listed:
  • Pantelis Kammas

    (Athens University of Economics and Business.)

  • Maria Poulima

    (Department of Economics, University of Ioannina, Greece.)

  • Vassilis Sarantides

    (Athens University of Economics and Business.)

Abstract
The establishment of the Third Hellenic Republic in 1974 (Metapolitefsi) was characterized by an increased public demand for a less centralized political system. The main political parties that emerged responded by giving priority to the development of local and regional organizations and creating a wide network of grassroots movements. This led to a gradual introduction of more decentralized political institutions and a significant increase of expenses to prefectures and subsidies to municipalities. Building on two novel hand-collected datasets at the prefectural and municipal levels, our analysis provides empirical evidence of party favoritism in the spatial allocation of intergovernmental transfers during the first two decades of Metapolitefsi. We argue that governing parties diverted intergovernmental transfers towards their political strongholds and politically aligned mayors, as local authorities played the role of the focal points in the process of party building.

Suggested Citation

  • Pantelis Kammas & Maria Poulima & Vassilis Sarantides, 2023. "Fueling the party machine: Evidence from Greece during Metapolitefsi," Working Papers 2021002, The University of Sheffield, Department of Economics.
    • Handle: RePEc:shf:wpaper:2021002
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    File URL: https://www.sheffield.ac.uk/economics/research/serps
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    References listed on IDEAS

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    1. Kammas, Pantelis & Poulima, Maria & Sarantides, Vassilis, 2023. "Fueling the party machine: Evidence from Greece during Metapolitefsi," Explorations in Economic History, Elsevier, vol. 90(C).

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    More about this item

    Keywords

    intergovernmental transfers; clientelistic networks; party machine;
    All these keywords.

    JEL classification:

    • H1 - Public Economics - - Structure and Scope of Government
    • H4 - Public Economics - - Publicly Provided Goods
    • D7 - Microeconomics - - Analysis of Collective Decision-Making

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