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The Coalition Effect on Policy Outcomes: A study on closeelections in Swedish Municipalities
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
2017 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

This paper examines if changes in coalitional bargaining power affects some policy outcomes in Swedish municipalities. The policy outcomes are the education cost per capita and the municipal tax rate. The studied data are on Swedish municipalities over five elections periods during the years 1994 to 2014. This paper uses a simulation method developed by Freier and Odendahl (2015) to investigate if coalitional bargaining power affects the policy outcomes. The method finds close elections by simulating shocks to the election result. The close elections is then used to find instruments in an instrument variable regression. This makes it possible to see if changes in voting power leads to changes in the policy outcome. Voting power is used as a proxy for coalitional bargaining power in this thesis. This paper doesn’t find evidence for that changes in coalitional bargaining power leads to changes in the municipal tax rate or the education cost per capita.

Place, publisher, year, edition, pages
2017.
Keywords [en]
Coalitional bargaining power, Sweden, Swedish municipalities, tax rate, education cost per capita, voting power, instrumental variable, local governments
National Category
Economics
Identifiers
URN: urn:nbn:se:uu:diva-325947OAI: oai:DiVA.org:uu-325947DiVA, id: diva2:1117791
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Available from: 2017-08-18 Created: 2017-06-29 Last updated: 2017-08-18Bibliographically approved

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