Vetoing and inaugurating policy like others do : evidence on spatial interactions in voter initiatives


Asatryan, Zareh ; Havlik, Annika ; Streif, Frank


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URL: https://ub-madoc.bib.uni-mannheim.de/39676
URN: urn:nbn:de:bsz:180-madoc-396765
Document Type: Working paper
Year of publication: 2015
The title of a journal, publication series: ZEW Discussion Papers
Volume: 15-054
Place of publication: Mannheim
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: D72 , D78 , R50,
Keywords (English): Direct democracy , spatial spillovers , policy diffusion, citizen preferences
Abstract: A sizeable literature studies whether governments strategically interact with each other through policy-diffusion, learning, fiscal and yardstick competition. This paper asks whether, in the presence of direct democratic institutions, spatial interactions additionally result from voters’ direct actions. The proposed mechanism is that the voters’ actions in vetoing a decision or inaugurating a preferred policy by a binding initiative in their jurisdiction can potentially have spillover effects on the actions of voters and special interest groups of neighboring jurisdictions. Utilizing data on around 1,800 voter-petitions across over 12,000 German municipalities in 2002-09, we find that a jurisdiction’s probability of hosting a petition is positively driven by the neighbors’ direct democratic activity. These effects are persistent, and are stronger for more visible instruments of direct democracy. The interactions are also mostly driven by petitions in same or similiar policy areas, and are stronger in towns with relatively more per capita newspapers.




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