TY  - JOUR
AU  - Ferreira,Fernando
AU  - Gyourko,Joseph
TI  - Do Political Parties Matter? Evidence from U.S. Cities
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 13535
PY  - 2007
Y2  - October 2007
UR  - http://www.nber.org/papers/w13535
L1  - http://www.nber.org/papers/w13535.pdf
N1  - Author contact info:
Fernando Ferreira
The Wharton School
University of Pennsylvania
1461 Steinberg - Dietrich Hall
3620 Locust Walk
Philadelphia, PA 19104-6302
Tel: 215/898-7181
Fax: 215/573-2220
E-Mail: fferreir@wharton.upenn.edu

Joseph Gyourko
University of Pennsylvania
Wharton School of Business
3620 Locust Walk
1480 Steinberg-Dietrich Hall
Philadelphia, PA 19104-6302
Tel: 215/898-3003
Fax: 215/573-2220
E-Mail: gyourko@wharton.upenn.edu
AB  - We examine whether partisan political differences have important effects on policy outcomes at the local level using a new panel data set of mayoral elections in the United States. Applying a regression discontinuity design to deal with the endogeneity of the mayor's party, we find that party labels do not affect the size of government, the allocation of spending or crime rates, even though there is a large political advantage to incumbency in terms of the probability of winning the next election. The absence of a strong partisan impact on policy in American cities, which is in stark contrast to results at the state and federal levels of government, appears due to certain features of the urban environment associated with Tiebout sorting. In particular, there is a relatively high degree of household homogeneity at the local level that appears to provide the proper incentives for local politicians to be able to credibly commit to moderation and discourages strategic extremism.
ER  -