Egger, Peter; Koethenbuerger, Marko - In: American Economic Journal: Applied Economics 2 (2010) 4, pp. 200-212
This paper presents empirical evidence of a positive effect of council size on government spending using a dataset of 2,056 municipalities in the German state of Bavaria over a period of 21 years. We apply a regression discontinuity design to avoid an endogeneity bias. In particular, we exploit...