The Role of Electoral Incentives for Policy Innovation: Evidence from the US Welfare Reform

How do governors’ reelection motives affect policy experimentation? We develop a theoretical model of this situation, and then test the predictions in data on US state-level welfare reforms from 1978 to 2007. This period marked the most dramatic shift in social policy since the New Deal. Our finding...

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Veröffentlicht in:American economic journal. Economic policy 2021-05, Vol.13 (2), p.26-57
Hauptverfasser: Bernecker, Andreas, Boyer, Pierre C., Gathmann, Christina
Format: Artikel
Sprache:eng
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Zusammenfassung:How do governors’ reelection motives affect policy experimentation? We develop a theoretical model of this situation, and then test the predictions in data on US state-level welfare reforms from 1978 to 2007. This period marked the most dramatic shift in social policy since the New Deal. Our findings indicate that governors with strong electoral support are less likely to experiment than governors with little support. Yet, governors who cannot be reelected actually experiment more than governors striving for reelection. These findings are robust to controlling for ideology, preferences for redistribution, the state legislature, and cross-state learning.
ISSN:1945-7731
1945-774X
DOI:10.1257/pol.20190690