The Welfare Consequences of Centralization: Evidence from a Quasi-Natural Experiment in Switzerland

A-Tier
Journal: Review of Economics and Statistics
Year: 2021
Volume: 103
Issue: 4
Pages: 621-635

Score contribution per author:

4.022 = (α=2.01 / 1 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Many countries are reallocating tasks and powers to more central levels of government. To identify centralization's welfare effects, I use a difference-in-differences design that relies on time and cross-cantonal variations in the implementation of centralization reforms in Switzerland. I find that centralization provokes significant decreases in residents' life satisfaction. I identify one mechanism driving the effect: the procedural disutility that individuals experience from having less influence over the formulation of political decisions. This effect is largest among individuals with higher expected benefits from being involved in the political decision process, with detrimental effects on local political participation.

Technical Details

RePEc Handle
repec:tpr:restat:v:103:y:2021:i:4:p:621-635
Journal Field
General
Author Count
1
Added to Database
2026-01-25