We study the effect of the electoral system (single-ballot vs runoff) on the quality of politicians, measured by the average educational attainment, at the local level in Italy over the period 1994–2017. By exploiting the discontinuous voting rule shift nearby the 15,000 population cut-off, we have implemented a RDD and found that the change in the electoral scheme leads to an overall downward variation in the educational attainment of local politicians by about 2 % compared to years of schooling of politicians in municipalities just below the cut-off. Findings are similar when we separately focus on the educational attainment of mayors and councilors, and when we use alternative measures of quality of politicians related both to the previous occupation and to previous political experience. However, different confounding policies related to the voting scheme change at the cut-off. We show that the negative effect is not directly related to the way politicians are elected (runoff vs single-ballot scheme) but to the number of lists supporting the mayoral candidates: in municipalities below 15,000 inhabitants candidates running for mayor are supported only by one single list, whereas above the cut-off mayoral candidates might be supported by more lists. Overall, we speculate that the negative impact produced by the treatment on the educational attainment of local politicians is explained by the different selection process of candidates adopted by political parties, rather than by voters’ preferences toward low-skilled politicians.
We analyze the impact of government size, measured by total spending per capita, on tax evasion at the provincial level in Italy over the period 2001–2015. In order to solve endogeneity issues we rely on a system GMM and find that public expenditure negatively affects tax evasion, as taxpayers perceive the government is efficiently spending resources coming from the tax levy. Results are confirmed when we (1) consider expenditures related to long-term investments, namely capital spending per capita, and (2) directly test the impact of government efficiency on tax evasion. In addition, we show that the impact of public spending is heterogeneous across geographical areas: an increase in public expenditure leads to a downward shift in tax evasion only in the northern part of Italy, characterized by a relatively larger initial level of public goods provision.
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We test the hypothesis that, being clients not fully informed on the expected benefit from fulfilling the disputes and being incentives of lawyers not aligned to those of their clients, the demand for legal disputes in Italy is induced. This hypothesis finds empirical support for a sample of Italian legal districts.
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