Arbeitspapier

Elections and government efficiency

Politicians are expected to influence policy outcomes in a way to gain electoral advantage. There is, however, a pending question whether efficiency in the provision of public goods and services is affected by strategic behavior. I examine how electoral cycles influence local government efficiency by using OLS fixed effects, event study, and instrumental variable estimations in a large balanced panel of around 2,000 municipalities in the German state of Bavaria. Cost efficiency is estimated by employing a fixed effects semi-parametric stochastic frontier analysis. The results show that electoral cycles increase government efficiency in election and pre-election years by around 0.75- 0.85 %. The effect is larger when executive and council electoral cycles coincide, and when incumbent mayors run for office again. My findings suggest an efficiencyenhancing effect of elections at given institutional conditions.

Sprache
Englisch

Erschienen in
Series: ifo Working Paper ; No. 363

Klassifikation
Wirtschaft
Semiparametric and Nonparametric Methods: General
Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
Single Equation Models: Single Variables: Instrumental Variables (IV) Estimation
Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
Bureaucracy; Administrative Processes in Public Organizations; Corruption
Public Goods
State and Local Government; Intergovernmental Relations: General
State and Local Budget and Expenditures
General Regional Economics: Econometric and Input-Output Models; Other Models
Regional Government Analysis: General
Thema
Electoral cycle
efficiency
local government
stochastic frontier analysis (sfa)
panel data
event study
instrumental variables

Ereignis
Geistige Schöpfung
(wer)
Dorn, Florian
Ereignis
Veröffentlichung
(wer)
ifo Institute - Leibniz Institute for Economic Research at the University of Munich
(wo)
Munich
(wann)
2021

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Dorn, Florian
  • ifo Institute - Leibniz Institute for Economic Research at the University of Munich

Entstanden

  • 2021

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