We discuss the circumstances under which voters in local elections will reward fiscal responsibility and suggest that such circumstances evolved in Israel in the mid-1990s. We present empirical evidence that, indeed, fiscal performance of mayors substantially affected their reelection...

This paper exploits a natural experiment in Hesse where a reform of the electoral rule from mayor appointment by the local council towards direct mayor elections was introduced during a phase-in period from 1993 to 1998. The end of the term of the last appointed mayor varies across...

We exploit a discontinuity in Brazilian municipal election rules to investigate whether political competition has a causal impact on policy choices. In municipalities with less than 200,000 voters mayors are elected with a plurality of the vote. In municipalities with more than 200,000 voters a...