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http://hdl.handle.net/2445/168067
Title: | Manager or professional politician? Local fiscal autonomy and the skills of elected officials |
Author: | Bordignon, Massimo Gamalerio, Matteo Turati, Gilberto |
Keywords: | Descentralització administrativa Partits polítics Tàctiques polítiques Política fiscal Itàlia Decentralization in government Political parties Practical politics Fiscal policy Italy |
Issue Date: | Jul-2020 |
Publisher: | Elsevier B.V. |
Abstract: | We provide a theoretical and empirical assessment of why local fiscal autonomy can affect the skills of elected officials in sub-national governments. We first develop a model of politics with different types of politicians and show that - following a tax decentralization reform increasing local fiscal autonomy - politicians with high administrative skills are elected in rich jurisdictions while politicians with high political skills are elected in poor ones. As a result, voter welfare increases only, or mainly, in rich jurisdictions. We then look for empirical support to these predictions by exploiting the decentralization reforms affecting Italian municipalities in the '90s. These reforms introduced both the direct election of the mayor and new autonomous tax tools for municipalities characterized by large differences in their tax bases. Our estimates - robust to several alternative stories - emphasize a differential change in elected officials at the municipal level between rich and poor jurisdictions. These findings provide a new explanation for the observed poor performance of local governments largely financed by grants. |
Note: | Versió postprint del document publicat a: https://doi.org/10.1016/j.regsciurbeco.2020.103529 |
It is part of: | Regional Science and Urban Economics, 2020, vol. 83, num. July, p. 103529 |
URI: | http://hdl.handle.net/2445/168067 |
Related resource: | https://doi.org/10.1016/j.regsciurbeco.2020.103529 |
ISSN: | 0166-0462 |
Appears in Collections: | Articles publicats en revistes (Economia) |
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