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Policy Diffusion through Elections

Author

Listed:
  • Shigeoka, Hitoshi

    (University of Tokyo)

  • Watanabe, Yasutora

    (University of Tokyo)

Abstract

Staggered difference-in-differences designs are pervasive in policy evaluations but little is known about the mechanisms of policy diffusion: How and why do such policies spread across jurisdictions? In this study, we highlight the role of elections in policy diffusion in settings where municipal elections are asynchronous due to historical reasons. First, we empirically show the presence of policy diffusion using neighbors' election cycles as instruments for neighbors' policy adoption. Second, we further demonstrate interactions of municipalities' election cycles with neighbors' adoption and show that they follow neighbors' policy only during their own election timing, indicating that policy diffuses through elections.

Suggested Citation

  • Shigeoka, Hitoshi & Watanabe, Yasutora, 2023. "Policy Diffusion through Elections," IZA Discussion Papers 16275, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16275
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    More about this item

    Keywords

    policy diffusion; elections; subsidy; child healthcare; political budget cycles;
    All these keywords.

    JEL classification:

    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare

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