The political determinants of government spending allocation and growth |
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| Institution: | 1. The London School of Economics and Political Science, Houghton St, London WC2A 2AE, UK;2. University of Roehampton, Roehampton Ln, London SW15 5PU, UK;1. Washington University in St Louis, St Louis, USA;2. Università Ca’ Foscari, Venezia, Italy;3. European University Institute, Firenze, Italy;4. Washington University in St Louis, St Louis, USA |
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| Abstract: | I study the allocation of spending, and the impact of politics on regional growth in Greece, using a large dataset that covers the period between 1959 and 2010. I find that electoral districts that vote for the majority party and are represented by majority MPs receive more spending from the central government, and grow faster. Districts do not seem to enjoy any additional benefits when their elected representatives also occupy positions in the executive branch of the government. |
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