Political fragmentation and government stability evidence from local governments in Spain by Felipe Carozzi, Davide Cipullo and Luca Repetto
By: Carozzi, Felipe
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Contributor(s): Cipullo, Davide | Repetto, Luca.
Material type: 
ArticleSubject(s): POLITICA | GOBIERNO | PARTIDOS POLITICOS | PARLAMENTOS REGIONALES | ANALISIS DE DATOS | VARIABLES ESTADISTICAS | ESPAÑA
In:
American Economic Journal : Applied Economics v. 14, n. 2, April 2022, p. 23-50Summary: 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 reducing the probability of a single-party majority and increasing the instability of governments when such a majority is not available. We interpret our results in light of a bargaining model of coalition formation featuring government instability.
| Item type | Current location | Home library | Call number | Status | Date due | Barcode |
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| Artículos | IEF | IEF | OP 2134/2022/2-1 (Browse shelf) | Available | OP 2134/2022/2-1 |
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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 reducing the probability of a single-party majority and increasing the instability of governments when such a majority is not available. We interpret our results in light of a bargaining model of coalition formation featuring government instability.
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