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This study examines the effect of government ideology on intergovernmental transfers for public health. When local governments depend on intergovernmental transfers, grantor governments may have an incentive to use these transfers to promote local public services that reflect their political value. We test this idea using a panel of 226 municipalities located within 16 regional governments in South Korea. Using both fixed effects and regression discontinuity estimates, we show that left-wing regional governments provide roughly 10 percent more health subsidies to municipalities than right-wing regional governments. These additional health subsidies lead to greater municipal health spending. Finally, we show that the left-wing tendency of regional governments also significantly increases transfers on social welfare and public education.
Presenter(s)
Sujin Min, Sungkyunkwan University
Non-Presenting Authors
Youngho Kang, Soongsil University
Dongwon (Dan) Lee, Sungkyunkwan University
Government ideology and intergovernmental transfers for public health: Evidence from South Korea
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Session: [052] SOCIAL PREFERENCES AND PUBLIC POLICY Date: 7/2/2023 Time: 4:30 PM to 6:15 PM