A sizeable literature studies strategic interactions between governments. In this paper, we ask whether, in the presence of direct democratic institutions, voters’ actions in vetoing a decision or inaugurating a policy by a binding initiative in their jurisdiction have spillover effects on the actions of voters in neighboring jurisdictions. We collect (and make available) data on 3300 initiatives in German towns from 2002 to 2014 and match these to panel data on the towns’ sociodemographic and fiscal characteristics. We apply an instrumental variables approach and find that a jurisdiction’s probability of hosting an initiative is positively driven by the neighbors’ direct democratic activity. The size of the estimated average effect peaks around a 20 km neighborhood—where a standard deviation change of neighbors’ activity increases the probability of hosting an initiative by 5 percentage points—then gradually declines and fades away after around 60 km. This effect is driven by spillovers in similar policy areas and by successful initiatives, and is stronger in towns with relatively more information flows (measured by newspaper consumption and commuter flows).
Public Choice – Springer Journals
Published: Jun 21, 2017
It’s your single place to instantly
discover and read the research
that matters to you.
Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.
All for just $49/month
Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly
Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.
Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.
Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.
All the latest content is available, no embargo periods.
“Hi guys, I cannot tell you how much I love this resource. Incredible. I really believe you've hit the nail on the head with this site in regards to solving the research-purchase issue.”Daniel C.
“Whoa! It’s like Spotify but for academic articles.”@Phil_Robichaud
“I must say, @deepdyve is a fabulous solution to the independent researcher's problem of #access to #information.”@deepthiw
“My last article couldn't be possible without the platform @deepdyve that makes journal papers cheaper.”@JoseServera