Endogenous Local Government Formation and Nation Building (joint with Serhii Abramenko)
Abstract
How does local government amalgamation affect public goods provision, economic activity, and nation building? We focus on an administrative reform in Ukraine between 2015-2020, during which smaller local councils (LCs) had the opportunity to voluntarily amalgamate in order to keep a substantially larger portion of their tax revenues and gain greater autonomy over the local administration. By investigating the determinants of the willingness to amalgamate, we show that some of the pre-reform characteristics, such as tax revenues, the share of native Russian speakers, and political preferences, were not substantial predictors of the amalgamation. We first show that the reform positively impacted district level personal income tax collection. Secondly, by employing previously unused data on standardized college entrance exam results, we estimate a staggered difference-in-differences model and show that the reform did not affect the Ukrainian test scores significantly. For math results, it led to a 0.07 standard deviation decrease after four years of exposure. Utilizing the same staggered design, we show that the reform led to 0.06 standard deviations increase in log nightlight intensity per capita after four years of exposure. Finally, using a nationally representative repeated cross-sectional survey, we document the greater self-identification as Ukrainian as opposed to Russian in rural areas.
About this workshop
The Public Governance workshop is an online seminar series focused on state of art research in political economy that uses non-traditional data and data-intensive methods.
The workshop gives a platform for the research on the role of governance in designing and developing better policies. Key features are the political environment, the role of the media, the engagement of stakeholders such as civil society and firms, the market structure and level of competition, and the independence of public regulators, among others. Particular emphasis is placed on research with NLP methods due to the proven usefulness of transforming text into data for further econometric analysis.
Periodicity: Mondays from 17h30 to 19h.