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Runoff vs. plurality

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  • Emanuele Bracco
  • Alberto Brugnoli

Abstract

Plurality and runoff systems oer very different incentives to parties and coalition of voters, and demand different political strategies from potential candidates and chief executives. Italian mayors and city councils are elected with a different electoral system according to the locality's population, while municipalities are otherwise treated identically in terms of funding and powers. We exploit this institutional feature to test how the presence of different electoral systems affects the central government decisions on grants, and the local government decisions on local taxes. We find evidence that the upper-tier governments favour runoff-elected mayors, and that runoff-elected mayors levy lower taxes. This is broadly consistent with the literature on runoff and plurality rule electoral systems.

Suggested Citation

  • Emanuele Bracco & Alberto Brugnoli, 2012. "Runoff vs. plurality," Working Papers 23767067, Lancaster University Management School, Economics Department.
    • Handle: RePEc:lan:wpaper:23767067
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    2. Morelli, Massimo & Gamalerio, Matteo & Negri, Margherita, 2020. "Immigration, Occupational Choice and Electoral Rules Theory and Evidence on Dual Ballot Openness," CEPR Discussion Papers 14896, C.E.P.R. Discussion Papers.
    3. Paolo Chiades & Luciano Greco & Vanni Mengotto & Luigi Moretti & Paola Valbonesi, 2016. "Intergovernmental transfers and expenditure arrears," Working Papers hal-01442684, HAL.
    4. Massimiliano Ferraresi & Umberto Galmarini & Leonzio Rizzo & Alberto Zanardi, 2019. "Switch toward tax centralization in Italy: a wake-up for the local political budget cycle," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 26(4), pages 872-898, August.
    5. Matteo Gamalerio & Massimo Morelli & Margherita Negri, 2021. "The Political Economy of Open Borders: Theory and Evidence on the role of Electoral Rules," BAFFI CAREFIN Working Papers 21157, BAFFI CAREFIN, Centre for Applied Research on International Markets Banking Finance and Regulation, Universita' Bocconi, Milano, Italy.
    6. De Benedetto, Marco Alberto, 2018. "Quality of Politicians and Electoral System. Evidence from a Quasi-experimental Design for Italian Cities," MPRA Paper 89511, University Library of Munich, Germany.
    7. Chiades, Paolo & Greco, Luciano & Mengotto, Vanni & Moretti, Luigi & Valbonesi, Paola, 2019. "Fiscal consolidation by intergovernmental transfers cuts? The unpleasant effect on expenditure arrears," Economic Modelling, Elsevier, vol. 77(C), pages 266-275.
    8. Bracco, Emanuele & Lockwood, Ben & Porcelli, Francesco & Redoano, Michela, 2015. "Intergovernmental grants as signals and the alignment effect: Theory and evidence," Journal of Public Economics, Elsevier, vol. 123(C), pages 78-91.
    9. Cipullo, Davide, 2018. "Runoff vs. Plurality: Does It Matter for Expenditures? Evidence from Italy," Working Paper Series 2018:13, Uppsala University, Department of Economics.
    10. Marco Alberto De Benedetto, 2018. "Quality of Politicians and Electoral System. Evidence from a Quasi-experimental Design for Italian Cities," BCAM Working Papers 1802, Birkbeck Centre for Applied Macroeconomics.
    11. Marco Alberto De Benedetto & Sergio Destefanis & Luigi Guadalupi, 2019. "Electoral Reform and Public Sector Efficiency. Some Evidence From Italian Municipalities," Working Papers 3_237, Dipartimento di Scienze Economiche e Statistiche, Università degli Studi di Salerno.
    12. Matteo Gamalerio & Massimo Morelli & Margherita Negri, 2021. "The Political Economy of Open Borders: Theory and Evidence on the role of Electoral Rules," BAFFI CAREFIN Working Papers 21157, BAFFI CAREFIN, Centre for Applied Research on International Markets Banking Finance and Regulation, Universita' Bocconi, Milano, Italy.
    13. Bracco, Emanuele & Redoano, Michela & Porcelli, Francesco, 2012. "Incumbent Effects and Partisan Alignment in Local Elections: a Regression Discontinuity Analysis Using Italian Data," CAGE Online Working Paper Series 87, Competitive Advantage in the Global Economy (CAGE).
    14. Paolo Chiades & Luciano Greco & Vanni Menegotto & Luigi Moretti & Paola Valbonesi, 2015. "Fiscal Consolidation and Expenditure Arrears: Evidence from Local Governments’ Investments," "Marco Fanno" Working Papers 0197, Dipartimento di Scienze Economiche "Marco Fanno".

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