Gáspár Attila /CEU/
The public morals – public services tradeoff: Theory and evidence from Sharia regulations in Indonesia
Campaigning on value-based and highly divisive issues can serve as a cheaper alternative to provision of goods and services, so politicians have an economic incentive to cater to hardliners. A voting model is used to examine this idea, and its predictions are then tested using Indonesian data. About half of the district governments in Indonesia have been experimenting with Sharia-based religious policies since 2000. Their negative impact on government expenditure and services, which is the main prediction of the model, is identified using difference-in-differences and instrumental variables methodologies. The paper also gives a back of the envelope calculation on unobserved welfare effects of Sharia-based policies using ex-post election performance of incumbents.
Challenging Science and Innovation Policy Utrecht, 1-3 June 2022, hosted by Copernicus Institute of Sustainable Development, Utrecht University The “European Forum for Studies ... Read More »
Published in ‘Does EU Membership Facilitate Convergence? The Expierience of the EU’s Eastern Enlargement – Volume II’ Edited by Landesmann, Michael, Székely, Istvan P. ... Read More »
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