Arbeitspapier

Leaders' impact on public spending priorities: The case of the German Laender

We examine determinants of the composition of public expenditure in the German Laender (states) over the period 1993-2008, as the Laender exhibit a high degree of institutional and political homogeneity and are endowed with extensive fiscal competences. Our prime contribution is an investigation into how political leaders' socioeconomic background influences public spending priorities. Applying sociological theory, we link preferences for the composition of public spending to social status. In contrast to approaches relying on political budget cycles or partisan theory, we find strong and theory-consistent evidence that prime ministers tend to favour fiscal policies supporting the social class in which they are socialised. Governments led by prime ministers from a poor socioeconomic background spend significantly more on social security, education, health, infrastructure, and public safety.

Language
Englisch

Bibliographic citation
Series: MAGKS Joint Discussion Paper Series in Economics ; No. 09-2012

Classification
Wirtschaft
Fiscal Policy
State and Local Government: Health; Education; Welfare; Public Pensions
State and Local Government: Other Expenditure Categories
Subject
leadership
socioeconomic status
social rivalry
public expenditure composition
Öffentliche Ausgaben
Länderfinanzen
Regierungschef
Sozialer Status
Teilstaat
Schätzung
Deutschland

Event
Geistige Schöpfung
(who)
Hayo, Bernd
Neumeier, Florian
Event
Veröffentlichung
(who)
Philipps-University Marburg, Faculty of Business Administration and Economics
(where)
Marburg
(when)
2012

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Hayo, Bernd
  • Neumeier, Florian
  • Philipps-University Marburg, Faculty of Business Administration and Economics

Time of origin

  • 2012

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