Political Fragmentation and Government Stability: Evidence from Local Governments in Spain

Felipe Carozzi, Davide Cipullo, Luca Repetto

Risultato della ricerca: Contributo in rivistaArticolo in rivistapeer review

Abstract

This paper studies how political fragmentation affects government stability. Using a regression-discontinuity design, we show that each additional party with representation in the local parliament increases the probability that the incumbent government is unseated by 5 percentage points. The entry of an additional party affects stability by increasing both the probability of a single-party majority and the instability of governments when such a majority is not feasible. We interpret our results in light of a bargaining model of coalition formation featuring government instability.
Lingua originaleEnglish
pagine (da-a)23-50
Numero di pagine28
RivistaAMERICAN ECONOMIC JOURNAL. APPLIED ECONOMICS
Volume14
DOI
Stato di pubblicazionePubblicato - 2022

Keywords

  • Bargaining
  • Fragmentation
  • Government Stability
  • No-confidence votes

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