This article studies the causal effect of electoral systems on fiscal outcomes using an empirical design exploiting a discontinuity in the application of electoral rules in Polish municipalities in the period 2002-2014. In that period, municipalities followed either majoritarian or proportional...

There is an abundant empirical literature demonstrating party favoritism whereby the central government is prone to disburse financial transfers to favor aligned local governments. This contrasts with much scarcer evidence on reverse party favoritism, i.e. aligned local governments offering...