Scandinavian Working Papers in Economics

Working Paper Series,
Uppsala University, Department of Economics

No 1999:10: Intergovernmental Grants as a Tactical Instrument: Some Empirical Evidence from Swedish Municipalities

Eva Johansson ()
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Eva Johansson: Department of Economics, Postal: Uppsala University, P.O. Box 513, SE-751 20 Uppsala, Sweden

Abstract: Are grants to Swedish municipalities tactical? In this essay, I derive testable implications from a theoretical voting model and test these on a panel of 255 Swedish municipalities, 1981 - 1995. In order to decide which regions that are politically powerful, both election results, and survey data from the Swedish election studies are used. The results, although somewhat ambiguous, support the hypothesis that intergovernmental grants are used in order to win votes.

Keywords: Political economy; tactical redistribution; intergovernmental grants

JEL-codes: D72; H77

34 pages, June 15, 1999

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