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Financial Indicators as Determinants of Mayoral Elections: Evidence From Italian Local Governments
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Author(s): Serena Santis (University of Campania “Luigi Vanvitelli”, Italy), Francesca Citro (University of Salerno, Italy), Beatriz Cuadrado-Ballesteros (University of Salamanca, Spain)and Marco Bisogno (University of Salerno, Italy)
Copyright: 2020
Pages: 27
Source title:
Financial Determinants in Local Re-Election Rates: Emerging Research and Opportunities
Source Author(s)/Editor(s): Ana Maria Cunha (Polytechnic Institute of Cávado and Ave, Portugal), Augusta Ferreira (University of Aveiro, Portugal), Maria José Fernandes (Polytechnic Institute of Cávado and Ave, Portugal)and Patrícia Gomes (Polytechnic Institute of Cávado and Ave, Portugal)
DOI: 10.4018/978-1-5225-7820-8.ch002
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Abstract
The chapter seeks to contribute to the literature on determinants of local government election by adopting a different perspective focused on the effects of financial indicators on the elections of mayors. Using the agency and the public choice theory, this study implements a model where specific financial indicators—whose selection takes into account the increased autonomy and responsibility of local politicians—have been included to document their effect on mayoral re-election. Focusing on the Italian context, the chapter examines a sample of 129 municipalities during the period 2008-2014, where several elections were held. By using different estimators, findings indicate that the re-election of mayors is affected by the level of indebtedness and the current equilibrium. In addition, current spending is better valued by citizens/voters than capital expenditure, which increases the probability of being re-elected.
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