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Disentangling fiscal effects of local constitutions

Author

Listed:
  • Kantorowicz, Jarosław
  • Köppl-Turyna, Monika
Abstract
We apply the difference-in-discontinuities design to disentangle the fiscal effects of the governance system conditional on electoral systems. We take advantage of a natural experiment, which involves two institutional reforms at the local level in Poland. The first reform introduced two electoral rules, which change along an exogenous population threshold: smaller municipalities use majoritarian elections, larger municipalities use proportional elections. The second reform changed the governance system in Polish municipalities from “parliamentary” to “presidential”. Our results indicate that a change from parliamentary to presidential form led to lower vertical fiscal imbalance predominantly in the jurisdictions with majoritarian elections and to a lesser extent in municipalities governed by proportional elections. This therefore confirms an interaction effect between the forms of government and electoral rules.

Suggested Citation

  • Kantorowicz, Jarosław & Köppl-Turyna, Monika, 2017. "Disentangling fiscal effects of local constitutions," Working Papers 06, Agenda Austria.
    • Handle: RePEc:zbw:agawps:06
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    Cited by:

    1. Scott Dallman & Anusha Nath & Filip Premik, 2021. "The Effect of Constitutional Provisions on Education Policy and Outcomes," Staff Report 623, Federal Reserve Bank of Minneapolis.
    2. Lars P. Feld & Ekkehard A. Köhler, 2023. "Standing on the shoulders of giants or science? Lessons from ordoliberalism," Public Choice, Springer, vol. 195(3), pages 197-211, June.
    3. Christa N. Brunnschweiler & Samuel Kwabena Obeng, 2020. "Rewarding Allegiance: Political Alignment and Fiscal Outcomes in Local Government," University of East Anglia School of Economics Working Paper Series 2020-05, School of Economics, University of East Anglia, Norwich, UK..
    4. Banaszewska, Monika & Bischoff, Ivo, 2021. "Grants-in-aid and election outcomes in recipient jurisdictions: The impact of EU funds on mayoral elections in Poland," European Journal of Political Economy, Elsevier, vol. 68(C).
    5. Kantorowicz, Jarosław & Köppl-Turyna, Monika, 2020. "Electoral systems and female representation in politics: Evidence from a regression discontinuity," Working Papers 20, Agenda Austria.
    6. Emmanuel E. Okoro & Joseph Echendu & Lawrence U. Okoye & Samuel E. Sanni & Kale B. Orodu & Rita I. Okoro, 2021. "Nigeria Deep Offshore Inland Basin Production Sharing Contract Acts: Evaluating Contractor s Take," International Journal of Energy Economics and Policy, Econjournals, vol. 11(4), pages 97-106.
    7. Kantorowicz, Jarosław, 2017. "Electoral systems and fiscal policy outcomes: Evidence from Poland," European Journal of Political Economy, Elsevier, vol. 47(C), pages 36-60.
    8. Köppl-Turyna, Monika & Kantorowicz, Jarosław, 2020. "The effect of quotas on female representation in local politics," Research Papers 15, EcoAustria – Institute for Economic Research.
    9. Bansak, Kirk & Nowacki, Tobias, 2022. "Effect Heterogeneity and Causal Attribution in Regression Discontinuity Designs," SocArXiv vj34m, Center for Open Science.

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    More about this item

    Keywords

    electoral rules; vertical fiscal imbalance; constitutions;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

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