Essays on fiscal policy and elections

Abstract

The chapters included here investigate the general relation between fiscal policy and elections. Chapter 1 provides a general summary of the 3 main chapters. Chapter 2 examines local and non-local public expenditures and how the two are linked through the political process. Emphasis is placed on the role of voter composition within localaties in order to look at the effects of suburbanization on expenditures. Chapter 3 examines the validity of the medan voter result when turnout is allowed to depend on policy platforms. With endogeneous turnout there may be multiple equilibria or a motivation to pull policy platforms away from the median and towards the mode of the voter distribution. Chapter 4 examines the link between presidential elections and the economy. Democratic election victories are often followed by a booming economy when compared to Republican victories. The instrument by which the president may influence the economy, however, is difficult to find. This chapter investigates the role of fiscal policy in explaining the impact of elections. It finds only a limited role for fiscal policy in the linkage from elections to the economy.