The market value of political partisanship: Quasi-experimental evidence from municipal elections

Roberto Basile, Valerio Filoso
2016 Papers in Regional Science  
Do different political parties implement divergent policies which impact the citizens' welfare? The overheated debate notwithstanding, it is far from clear if this is really the case. Whereas current literature focuses on specific policy outcomes, we use real estate prices to evaluate the economic impact of municipal policies. Using a new dataset on Italian municipal elections and real estate prices, we employ a regression discontinuity approach to detect the causal effect of a change in
more » ... al majorities. We find no difference between the effects of the policies enacted by left and right-wing parties. Further evidence confirms that the observed differences in fiscal behavior are hardly relevant for real estate capitalized values. and the participants at the 12th Journes Louis-Andr Grard-Varet, Aix-en-Provence, June 2013 for many insightful suggestions and corrections. All remaining errors are ours.
doi:10.1111/pirs.12238 fatcat:z7cc33rzojdkvpwnjhzds2m37q