Do coalitions lead to higher fiscal deficits? A regression discontinuity approach
- Artés Caselles, Joaquín
- Jurado, Ignacio
Editorial: Universitat de Girona = Universidad de Gerona
Año de publicación: 2014
Páginas: 29
Congreso: Encuentro de Economía Pública (21. 2014. Girona)
Tipo: Aportación congreso
Resumen
This paper studies the causal effect of the type of government on fiscal deficits in a panel of Spanish Municipalities. We follow a regression discontinuity design using the variation provided by the fact that the probability of a local government to be a single party-majority changes discontinuously when a party obtains the last seat that allows them to have more than fifty per cent of the seats of the municipality council. We find that majority governments run budgets with a surplus two percentage points greater than that of coalition governments.