Local Government Fiscal Policy, Social Capital and Electoral Payoff: Evidence across Italian Municipalities

Summary Citizens' attitudes and reactions to policymakers' decisions depend on several factors, including informal institutions. The novelty of this paper is to use social capital as a moderator factor to shed light on the relationship between fiscal policies and electoral outcomes. We investigate this relationship using a sample of 6,000 Italian municipalities over the period 2003‐2012 and use a Conditional Logit Matching model comparing...