This study investigates the impact of electing a majority in a municipality´s legislative body on different items of the local current and capital accounts. Inference is based on a RDD approach and a dataset containing electoral and financial information for a sample of 278 homogeneous...

This study relies on a constitutional reform introducing term limits at the local elections level in Portugal as a natural experiment to estimate incumbency advantage in mayoral elections. It stresses the distinction between partisan and personal incumbency advantage using data on six local...

Do established parties change political institutions to disadvantage smaller, nonmainstream parties if the latters´ electoral prospects improve? We study this question with a natural experiment from the German federal state of Hesse. The experiment is the abolishment of an explicit electoral...

In 2001, the state parliament of the German federal state of Hesse abolished a 5 percent legal electoral threshold for local elections. This reform had a stronger effect on municipalities with larger councils because implicit electoral thresholds decrease with council size. Exploiting...

We survey the theoretical and empirical literature on local and international tax competition in Economics. Based on this survey, we discuss whether EU countries should harmonize tax policies to prevent a race to the bottom. Much of the evidence suggests that tax competition does not lead to...