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New parties and policy outcomes: Evidence from Colombian local governments

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  • Galindo-Silva, Hector

Abstract

In many democracies, increasing political competition has changed the traditional party system and brought new parties into the political arena. This study examines whether the presence of politicians from new parties affects the size of government (measured by public spending and tax revenue). The study focuses on Colombian municipalities, where new parties have been numerous and successful in recent years. Regression discontinuity estimates show that public spending and tax revenues are significantly higher in municipalities governed by a mayor from a new party. Using information about local politics and the features of the new parties, I argue that this result is not associated with new party ideology, but instead relates to new parties having lower probability of reelection which raises the incentives to increase short-term rent seeking.

Suggested Citation

  • Galindo-Silva, Hector, 2015. "New parties and policy outcomes: Evidence from Colombian local governments," Journal of Public Economics, Elsevier, vol. 126(C), pages 86-103.
    • Handle: RePEc:eee:pubeco:v:126:y:2015:i:c:p:86-103
    DOI: 10.1016/j.jpubeco.2015.04.001
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    5. Egidio Farina, 2018. "The impact of political and religious leaders on socio-economic outcomes," Economics PhD Theses 0218, Department of Economics, University of Sussex Business School.
    6. Israel Garcia & Bernd Hayo, 2022. "The Influence of Politicians’ Sex on Political Budget Cycles: An Empirical Analysis of Spanish Municipalities," MAGKS Papers on Economics 202223, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
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    8. Leonardo Bonilla-Mejía & Iván Higuera-Mendieta, 2017. "Political Alignment in the Time of Weak Parties: Electoral Advantages and Subnational Transfers in Colombia," Documentos de Trabajo Sobre Economía Regional y Urbana 15746, Banco de la República, Economía Regional.
    9. Gamalerio, Matteo, 2020. "Do national political parties matter? Evidence from Italian municipalities," European Journal of Political Economy, Elsevier, vol. 63(C).
    10. Leonzio Rizzo & Massimiliano Ferraresi & Riccardo Secomandi, 2021. "Electoral incentives, investment in roads, and safety on local roads," Working Papers 20210710, University of Ferrara, Department of Economics.

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