Effects of majority coalitions on district fiscal outcomes and service access in Indonesia
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PhD Seminar (Econ)
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This paper empirically examines the effect of majority coalitions in district governments on fiscal outcomes and service access in Indonesia. Applying a regression discontinuity approach, the paper finds that district governments with majority coalitions raise more own-revenues and spend more than district governments with minority coalitions. Increased health spending and improved access to health services are among the observed outcomes. This finding suggests that majority coalition governments manage to mitigate the negative effects of political fragmentation at the district level.
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