Arbeitspapier
Do Politicians Reward Core Supporters? Evidence from a Discretionary Grant Program
We investigate whether politicians award intergovernmental grants to core supporters. Our new dataset contains information on discretionary project grants from a German state government to municipalities over the period 2008-2011. The results show that discretionary grants were awarded to municipalities with many core supporters of the incumbent state government. Discretionary grants per capita increased by about 1.4 percent when the vote share of the incumbent party in the state election increased by one percentage point. The fiscal capacity of a municipality does, by contrast, not predict the level of discretionary grants. We propose to trim discretionary project grants to the benefit of formula-based grants.
- Language
-
Englisch
- Bibliographic citation
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Series: CESifo Working Paper ; No. 6097
- Classification
-
Wirtschaft
Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
State and Local Budget and Expenditures
Intergovernmental Relations; Federalism; Secession
Governmental Loans; Loan Guarantees; Credits; Grants; Bailouts
- Subject
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intergovernmental grants
discretionary grants
fiscal equalization
core supporters
electoral motives
- Event
-
Geistige Schöpfung
- (who)
-
Kauder, Björn
Potrafke, Niklas
Reischmann, Markus
- Event
-
Veröffentlichung
- (who)
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Center for Economic Studies and ifo Institute (CESifo)
- (where)
-
Munich
- (when)
-
2016
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Kauder, Björn
- Potrafke, Niklas
- Reischmann, Markus
- Center for Economic Studies and ifo Institute (CESifo)
Time of origin
- 2016
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