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Coalition Effects in Swedish Municipalities: A Regression Discontinuity Analysis
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 study tests the so-called coalition effects hypothesis, suggesting that the number of parties in a coalition government is positively related to government spending. In addition, the study adds to the literature on how political competition effect economic outcomes in two ways: (1) by introducing a new level of analysis, the municipal; and (2) by using a quasi-experimental method, regression discontinuity (RD). The coalition effects hypothesis is tested on panel data set of Swedish municipalities spanning the period 1974-2017, 1998-2016 and 1998-2016, for the three outcome variables: municipal, tax rate, budget result and cost of operations respectively. The results of the RD analysis do not support the coalition effects hypothesis. A result that is supported by several internal validity checks of the RD framework used, as well as coefficient robustness checks; suggesting that the result represents the true treatment effect in the sample studied. 

Place, publisher, year, edition, pages
2017.
National Category
Economics
Identifiers
URN: urn:nbn:se:uu:diva-325958OAI: oai:DiVA.org:uu-325958DiVA, id: diva2:1117798
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Available from: 2017-08-18 Created: 2017-06-29 Last updated: 2017-08-18Bibliographically approved

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