nep-pol New Economics Papers
on Positive Political Economics
Issue of 2014‒05‒09
six papers chosen by
Eugene Beaulieu
University of Calgary

  1. Returns to of?ce in national and local politics By Kaisa Kotakorpi; Panu Poutvaara; Marko Tervio
  2. The Size of Local Legislatures and Women's Political Representation: Evidence from Brazil By Gabriel Correa; Ricardo A. Madeira
  3. A Panel Data Approach for Program Evaluation — Measuring the Benefits of Political and Economic Integration of Hong Kong with Mainland China By Cheng Hsiao; H. Steve Ching; Shui Ki Wan
  4. Geography, Economics and Political Systems: A Bird’s Eye View By Elise S. Brezis; Thierry Verdier
  5. Electoral Competition through Issue Selection By Micael Castanheira De Moura; Marco Giani; Enriqueta Aragonès
  6. Public expenditure distribution, voting, and growth By Lorenzo Burlon

  1. By: Kaisa Kotakorpi (University of Turku, Department of Economics and CESifo); Panu Poutvaara (University of Munich, Ifo Institute, CESifo, and IZA); Marko Tervio (Aalto University and HECER)
    Abstract: We study the returns to political office using data from Finnish parliamentary elections in 1970-2007 and municipal elections in 1996-2008. The discontinuity of electoral outcomes in individual candidate votes allows us to estimate the causal effect of being electedon subsequent income. Getting elected to parliament increases annual earnings initially by about 20 000 euro, but most of this effect fades out over time. Getting elected to a municipal council has a positive effect of about 1000 euro on subsequent annual earnings.
    Keywords: returns to of?ce, elections, regression discontinuity
    JEL: D72
    Date: 2013–09
  2. By: Gabriel Correa; Ricardo A. Madeira
    Abstract: Exploiting the exogenous changes in local legislature size at certain population thresholds in Brazil, this paper investigates whether the number of legislators can impact the political participation of women, a group that is extremely underrepresented in Brazilian politics. The results suggest that the number of seats in the legislature has a significant positive impact on women's presence in the political sphere, and we show that these effects are direct consequences of changes in local political competition. We also report that the representation of women in the decision-making process influences the municipal provision of public goods and services.
    Keywords: Legislature Size; Women’s Political Representation; Regression Discontinuity Design.
    JEL: D72 D78 H41
    Date: 2014–04–23
  3. By: Cheng Hsiao; H. Steve Ching; Shui Ki Wan
    Abstract: We propose a simple to implement panel data method to evaluate the impacts of social policy. The basic idea is to exploit the dependence among cross-sectional units to construct the counterfactuals. The cross-sectional correlations are attributed to the presence of some (unobserved) common factors. However, instead of trying to estimate the unobserved factors, we propose to use observed data. We use a panel of 24 countries to evaluate the impact of political and economic integration of Hong Kong (HK) with Mainland China. We find that the political integration hardly had any impact on the growth of the Hong Kong economy. However, the economic integration has raised HK’s annual real GDP by about 4%.
    Keywords: panel data, factor model, cross-sectional dependence, program evaluation, ARMA models.
    Date: 2013–10–14
  4. By: Elise S. Brezis (Bar-Ilan University); Thierry Verdier
    Date: 2014–04
  5. By: Micael Castanheira De Moura; Marco Giani; Enriqueta Aragonès
    Date: 2014–04–17
  6. By: Lorenzo Burlon (Bank of Italy)
    Abstract: In this paper we study why the misallocation of resources across different productive sectors tends to persist over time. To this end we propose a general equilibrium model that delivers two structural relations. On the one hand, the public expenditure distribution influences the future sectoral composition of the economy; on the other, the distribution of vested interests across sectors determines public policy decisions. The model predicts that different initial sectoral compositions entail different future streams of public expenditure and therefore different development paths.
    Keywords: public expenditure, sectoral composition, vested interests, economic growth
    JEL: O41 O43
    Date: 2014–04

This nep-pol issue is ©2014 by Eugene Beaulieu. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.