Arbeitspapier

Electoral competition and endogenous political institutions: Quasi-experimental evidence from Germany

Do established parties change political institutions to disadvantage smaller, nonmainstream parties if the latters´ electoral prospects improve? We study this question with a natural experiment from the German federal state of Hesse. The experiment is the abolishment of an explicit electoral threshold (the so called "five percent hurdle") for local elections in 2001 by the Hessian state parliament. The abolishment improved the electoral prospects of smaller parties at local elections, but local politicians from large mainstream parties had the ability to adjust municipal political institutions in such a way as to counteract the increased competitiveness of smaller parties. One such institutional adjustment is to reduce the size of the local council and thereby raise implicit electoral thresholds. Using a dataset that covers all 426 Hessian municipalities over the period 1989-2011, we document with a difference-indiscontinuity design that municipalities where the electoral competitiveness of smaller parties improved more because of the abolishment of the explicit threshold, reduced their council size more. Hence, established parties appear to erect barriers to entry by adjusting political institutions once new political formations become viable electoral alternatives.

Language
Englisch

Bibliographic citation
Series: cege Discussion Papers ; No. 237

Classification
Wirtschaft
Analysis of Collective Decision-Making: General
Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
Positive Analysis of Policy Formulation and Implementation
Subject
electoral rules
electoral thresholds
political competition

Event
Geistige Schöpfung
(who)
Baskaran, Thushyanthan
Lopes da Fonseca, Mariana
Event
Veröffentlichung
(who)
University of Göttingen, Center for European, Governance and Economic Development Research (cege)
(where)
Göttingen
(when)
2015

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Baskaran, Thushyanthan
  • Lopes da Fonseca, Mariana
  • University of Göttingen, Center for European, Governance and Economic Development Research (cege)

Time of origin

  • 2015

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