TY - JOUR
T1 - How budget trade-offs undermine electoral incentives to build public housing
AU - Hilbig, Hanno
AU - Wiedemann, Andreas
N1 - Publisher Copyright:
© 2024 The Author(s). American Journal of Political Science published by Wiley Periodicals LLC on behalf of Midwest Political Science Association.
PY - 2024
Y1 - 2024
N2 - Housing shortages and rising rents have increased demands for affordable housing. In this paper, we examine whether electoral constraints can undermine local politicians' incentives to build public housing. Empirically, we draw on the full-count census of all housing built in Germany, data on 19,685 local elections between 1989 and 2011, and an original survey. Using a difference-in-differences design, we demonstrate that incumbents are not rewarded, but rather experience moderate electoral losses after constructing new public housing. We then show that these losses are not primarily driven by homeowner opposition or native–foreigner competition. Instead, electoral punishment is largest in economically disadvantaged municipalities with relatively affordable housing, as voters prioritize spending in other local policy areas that are crowded out by public housing. Survey evidence demonstrates that electoral constraints emerge when voters' short-term spending preferences conflict with municipalities' long-term goals to provide affordable housing.
AB - Housing shortages and rising rents have increased demands for affordable housing. In this paper, we examine whether electoral constraints can undermine local politicians' incentives to build public housing. Empirically, we draw on the full-count census of all housing built in Germany, data on 19,685 local elections between 1989 and 2011, and an original survey. Using a difference-in-differences design, we demonstrate that incumbents are not rewarded, but rather experience moderate electoral losses after constructing new public housing. We then show that these losses are not primarily driven by homeowner opposition or native–foreigner competition. Instead, electoral punishment is largest in economically disadvantaged municipalities with relatively affordable housing, as voters prioritize spending in other local policy areas that are crowded out by public housing. Survey evidence demonstrates that electoral constraints emerge when voters' short-term spending preferences conflict with municipalities' long-term goals to provide affordable housing.
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U2 - 10.1111/ajps.12939
DO - 10.1111/ajps.12939
M3 - Article
AN - SCOPUS:85212687558
SN - 0092-5853
JO - American Journal of Political Science
JF - American Journal of Political Science
ER -