Do re-election probabilities influence public investment?

• Autores: Jon H. Fiva, Gisle James Natvik
• Localización: Documents de treball IEB, Nº. 36, 2009
• Idioma: inglés
• Enlaces
  • Texto completo (pdf)
• Resumen

  • 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 public goods to produce using labor and predetermined public capital.