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Electoral system change and spending: Four quantitative case studies

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  • Pfeil, Christian F.

Abstract

This paper investigates the effects of electoral system changes in Japan, New Zealand and Italy on the overall level of spending as well as on social spending. In 1996 both Japan and New Zealand switched from a majoritarian rule to a mixed-member electoral system. Italy switched from a proportional rule to a mixed-member electoral system in 1994 and turned back to a proportional rule in 2006. By applying the Synthetic Control Method I find an effect on the overall level of spending in the range between 2.13 and 3.36 percentage points. However, the treatment effect is either poorly statistically significant or insignificant. I can find a clear significant effect on social spending in New Zealand (2.08 percentage points) but not in Japan (0.45 percentage points) and Italy (0.42 percentage points and 1.53 percentage points). This might be due to the fact that New Zealand switched from a pure majoritarian rule to an almost pure proportional rule.

Suggested Citation

  • Pfeil, Christian F., 2016. "Electoral system change and spending: Four quantitative case studies," Freiburg Discussion Papers on Constitutional Economics 16/06, Walter Eucken Institut e.V..
    • Handle: RePEc:zbw:aluord:1606
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    Cited by:

    1. Feld, Lars P., 2018. "The quest for fiscal rules," Freiburg Discussion Papers on Constitutional Economics 18/09, Walter Eucken Institut e.V..
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    More about this item

    Keywords

    electoral system change; government spending; synthetic control method; mixed-member electoral systems;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government

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