Jon H. Fiva

New Evidence on the Effect of Fiscal Decentralization on the Size and Composition of Government Spending

This paper adds to the literature by utilizing improved data on tax revenue decentralization to reexamine the relationship between fiscal decentralization and the size of government. An econometric analysis using panel data from 18 OECD countries shows that fiscal decentralization matters for both the size and the composition of government spending. Tax revenue decentralization is associated with a smaller public sector, while expenditure decentralization is associated with a larger public sector. The results indicate that the former effect is driven by a reduction in social security transfers, while the latter effect is driven by increased government consumption.

Causal effects of paternity leave on children and parents

In this paper we use a parental leave reform directed towards fathers to identify the causal effects of paternity leave on children’s and parents’ outcomes. We document that paternity leave causes fathers to become more important for children’s cognitive skills. School performance at age 16 increases for children whose father is relatively higher educated than the mother. We find no evidence that fathers’ earnings and work hours are affected by paternity leave. Contrary to expectation, mothers’ labor market outcomes are adversely affected by paternity leave. Our findings do therefore not suggest that paternity leave shifts the gender balance at home in a way that increases mothers’ time and/or effort spent at market work.

Information Shocks and the Dynamics of the Housing Market

In this paper, we analyze housing‐market reactions to the release of previously unpublished information on school quality. Using high‐quality housing data, which precisely bracket the timing of the information shock, we investigate housing‐price dynamics within school‐catchment areas. We find a robust short‐term housing‐market reaction to the publication of school‐quality indicators, suggesting that this information was new to the households, and that households are willing to pay for better schools. The publication effect does not seem to be permanent as prices revert to pre‐publication levels after two to three months.

Mechanical and Psychological Effects of Electoral Reform

Duverger (1954) noted that changes in electoral systems will have two types of effects: mechanical effects, and reactions of political agents in anticipation of these, which he referred to as psychological effects. It is complicated to empirically separate the two effects since these occur simultaneously. In this paper we use a large set of counterfactual election outcomes to address this issue. Our application is based on a nationwide municipal electoral reform in Norway, which changed the seat allocation method from d’Hondt to modified Sainte-Lague. Even though this electoral reform is of a relatively small magnitude, we document substantial psychological effects.

The Contraction Effect: How Proportional Representation Affects Mobilization and Turnout

A substantial body of research examines whether increasing the proportionality of an electoral system increases turnout, mostly based on cross-national comparisons. In this study, we offer two main contributions to the previous literature. First, we show that moving from a single-member district system to proportional representation in multimember districts should, according to recent theories of elite mobilization, produce a contraction in the distribution of mobilizational effort across districts and, hence, a contraction in the distribution of turnout rates. Second, we exploit a within-country panel data set based on stable subnational geographic units before and after Norway’s historic 1919 electoral reform in order to test various implications stemming from the contraction hypothesis. We find significant support for the predictions of the elite mobilization models.

Norwegian parliamentary elections, 1906–2013: representation and turnout across four electoral systems

Abstract Since gaining full independence in 1905, Norway has experienced more than a century of democratic elections, and has reformed its electoral system three times, most notably with the switch from a two-round runoff system to proportional representation in 1919. This research note introduces a new dataset featuring all candidates running for parliamentary (Storting) elections from 1906 to 2013, and documents the patterns over time and across electoral systems in the development of the party system; candidates’ gender, age, occupation, and geographic ties; and voter turnout. Scholars interested in using the dataset can gain access to it through the Norwegian Centre for Research Data.

Parties, Legislators, and the Origins of Proportional Representation:

A prominent line of theories holds that proportional representation (PR) was introduced in many European democracies by a fragmented bloc of conservative parties seeking to preserve their legislative seat shares after franchise extension and industrialization increased the vote base of socialist parties. In contrast to this “seat-maximization” account, we focus on how PR affected party leaders’ control over nominations, thereby enabling them to discipline their followers and build more cohesive parties. We explore this “party-building” account in the case of Norway, using roll call data from six reform proposals in 1919. We show that leaders were more likely to vote in favor of PR than rank-and-file members, even controlling for the parties’ expected seat payoffs and the district-level socialist electoral threat facing individual legislators. Moreover, using within-legislator variation, we show that the internal cohesion of parties increased significantly after the introduction of PR.