English, Article, Journal or magazine article edition: Do Re-election Probabilities Influence Public Investment? Jon H. Fiva; Gisle James Natvik

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Bookmark: http://trove.nla.gov.au/version/126052
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Do Re-election Probabilities Influence Public Investment?
Author
  • Jon H. Fiva
  • Gisle James Natvik
Physical Description
  • preprint
Notes
  • We identify exogenous variation in incumbent policymakers' re-election probabilities and explore empirically how this variation affects the incumbents' investment 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. Key for the consistency between data and theory is to account for complementarity between physical capital and flow variables in government production.
  • political economics, strategic capital accumulation, identifying popularity shocks
  • RePEc:ces:ceswps:_2709
Language
  • English
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