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Legislature Size and Government Spending in Italian Regions: Forecasting the Effects of a Reform

Nadia Fiorino and Roberto Ricciuti
Public Choice
Vol. 131, No. 1/2 (Apr., 2007), pp. 117-125
Published by: Springer
Stable URL: http://www.jstor.org/stable/27698087
Page Count: 9
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Legislature Size and Government Spending in Italian Regions: Forecasting the Effects of a Reform
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Abstract

We analyze the effect of different legislature size on per capita regional expenditure in Italy. According to the theory, legislature size has an indefinite effect on government spending because logrolling and transaction costs may have canceling effects. We find a large and significantly positive effect of the number of legislators. We use these findings to forecast the effects of the increase in the number of legislators that is taking place in some regions: a 10% increase in legislature size commands on average a 12% increase in per capita regional expenditure.

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