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Competition in the political arena and local government performance

Ashworth, John; Geys, Benny; Heyndels, Bruno; Wille, Fanny
Journal article, Peer reviewed
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URI
http://hdl.handle.net/11250/196439
Date
2014
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  • Scientific articles [1334]
Original version
Applied Economics, 46(2014)19: 2264-2276   10.1080/00036846.2014.899679
Abstract
Competition reduces rent extraction in private-sector firms. In this article, we empirically assess whether it similarly disciplines politicians by evaluating local-level governments’ performance in Flanders. The results indicate that electoral competition – measured via the number of parties competing in elections – significantly positively affects the productive efficiency of municipal policy. Intertemporal competition – measured as the volatility of election outcomes over time – has a similar, but weaker, positive effect. These beneficial effects are mitigated by the fact that competition may lead to more fragmented governments, which is shown to work against their productive efficiency. Overall, though, the beneficial effects outweigh the unfavourable ones in our sample.
Description
This is the authors’ accepted and refereed manuscript to the article. Publisher's webpage: www.tandfonline.com Availability of author's version is delayed until 18 months after first online publication. Unavailable until 2015-11-01. Publisher's policy.
Publisher
Taylor & Francis
Journal
Applied Economics

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