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IEB09-36_Fiva+Natvik.pdf (589.44 KB)

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Working paper

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2009

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cc-by-nc-nd, (c) Fiva et al., 2009
Please use this identifier to cite or link to this item: https://hdl.handle.net/2445/116996

Do re-election probabilities influence public investment?

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Abstract

We identify exogenous variation in incumbent policymakers’ re-election probabilities and explore empirically how this variation affects their investments in physical capital. Our results indicate that a higher re-election probability leads to higher investments, particularly in the purposes preferred more strongly by the incumbents. This aligns with a theoretical framework where political parties disagree about which públic goods to produce using labor and predetermined public capital.

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Política econòmica, Sociologia electoral, Inversions

Subject (English)

Economic policy, Voting research, Investments

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IEB (Institut d’Economia de Barcelona) – Working Papers

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FIVA, Jon H. and NATVIK, Gisle James. Do re-election probabilities influence public investment?. IEB Working Paper 2009/36. [consulted: 15 of June of 2026]. Available at: https://hdl.handle.net/2445/116996

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