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Distributional consequences of political representation

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  • Maaser, Nicola
  • Stratmann, Thomas

Abstract

We investigate, both theoretically and empirically, the effect of the geographic concentration of representatives on the geographic distribution of fiscal transfers. Our theoretical model predicts that more representatives residing in a geographic area leads to higher government funds to that area. Our empirical analysis uses the fact that in Germany, due to Germany׳s electoral rules in state elections, the number of representatives varies across electoral districts. Controlling for various socio-economic, demographic, and political variables and using a variety of estimation methods, we find that districts with a greater number of representatives receive more government funds.

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  • Maaser, Nicola & Stratmann, Thomas, 2016. "Distributional consequences of political representation," European Economic Review, Elsevier, vol. 82(C), pages 187-211.
    • Handle: RePEc:eee:eecrev:v:82:y:2016:i:c:p:187-211
    DOI: 10.1016/j.euroecorev.2015.11.007
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    Cited by:

    1. Frank, Marco & Stadelmann, David, 2021. "More federal legislators lead to more resources for their constituencies: Evidence from exogenous differences in seat allocations," Journal of Comparative Economics, Elsevier, vol. 49(1), pages 230-243.
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    3. Maaser, Nicola & Stratmann, Thomas, 2018. "Election rules, legislators' incentives, and policy outcomes: Evidence from the mixed member system in Germany," European Journal of Political Economy, Elsevier, vol. 54(C), pages 227-239.
    4. Marco Frank & David Stadelmann, 2021. "Political competition and legislative shirking in roll-call votes: Evidence from Germany for 1953–2017," Public Choice, Springer, vol. 189(3), pages 555-575, December.
    5. Sebastian Galiani & Iván Torre & Gustavo Torrens, 2016. "Fiscal Federalism and Legislative Malapportionment: Causal Evidence from Independent but Related Natural Experiments," Economics and Politics, Wiley Blackwell, vol. 28(1), pages 133-159, March.
    6. Francesco Ferlenga, 2023. "Better to be direct? Evidence from the abolition of direct elections in Italian local governments," Economics and Politics, Wiley Blackwell, vol. 35(3), pages 822-891, November.
    7. Frank, Marco & Stadelmann, David, 2023. "Competition, benchmarking, and electoral success: Evidence from 69 years of the German Bundestag," European Journal of Political Economy, Elsevier, vol. 77(C).
    8. Ilya A. Vaskin, 2020. "Buying Loyalty Of Voters Or Local Elites? Political Alignment And Transfers To Provinces In Tutelary Regimes: The Case Of Iran," HSE Working papers WP BRP 73/PS/2020, National Research University Higher School of Economics.
    9. Luisa Schneider & Daniela Wech & Matthias Wrede, 2022. "Political alignment and project funding," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 29(6), pages 1561-1589, December.
    10. Markus Reischmann, 2016. "Empirical Studies on Public Debt and Fiscal Transfers," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 63.
    11. Teferi Mergo & Alain-Desire Nimubona & Horatiu Rus, 2019. "Political Representation and the Provision of Public Goods: Theory and Evidence from Ethiopia," Working Papers 1901, University of Waterloo, Department of Economics, revised Jan 2019.
    12. Levoshko, Tamila, 2017. ""Pork-Barrel"-Politik und das regionale Wirtschaftswachstum. Empirische Evidenz für die Ukraine und Polen," Working Papers 0642, University of Heidelberg, Department of Economics.
    13. Frank, Marco & Stadelmann, David, 2022. "Competition, Benchmarking, and Electoral Success: Evidence from 65 years of the German Bundestag," VfS Annual Conference 2022 (Basel): Big Data in Economics 264070, Verein für Socialpolitik / German Economic Association.
    14. de Mouzon, Olivier & Laurent, Thibault & Le Breton, Michel, 2020. "One Man, One Vote Part 2: Measurement of Malapportionment and Disproportionality and the Lorenz Curve," TSE Working Papers 20-1089, Toulouse School of Economics (TSE).
    15. Taeko Hiroi, 2019. "Paradox of Redistribution: Legislative Overrepresentation and Regional Development in Brazil," Publius: The Journal of Federalism, CSF Associates Inc., vol. 49(4), pages 642-670.
    16. Kauder, Björn & Potrafke, Niklas & Reischmann, Markus, 2016. "Do politicians reward core supporters? Evidence from a discretionary grant program," European Journal of Political Economy, Elsevier, vol. 45(C), pages 39-56.
    17. Mattos, Enlinson & Politi, Ricardo & Morata, Rodrigo, 2021. "Birthplace favoritism and the distribution of budget amendments in Brazil: Evidence from nondistrict elections," European Journal of Political Economy, Elsevier, vol. 68(C).

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    More about this item

    Keywords

    Representation; Redistribution; Vote-buying; Transfers; Comparative political economy;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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