Abstract

ABSTRACTSpatial inequalities in publicly provided goods such as healthcare facilities have substantial socioeconomic effects. Little is known, however, about why publicly provided goods diverge among urban and rural regions. This study exploits narrow parliamentary majorities in German states between 1950 and 2014 in a regression discontinuity (RD) framework to show that government ideology influences the urban–rural gap in public infrastructure. Left-wing governments relocate hospital beds from rural regions. It is proposed that left-wing governments do so to gratify their more urban constituencies. In turn, spatial inequalities in hospital infrastructure increase, which seems to influence general and infant mortality.

Highlights

  • Local differences in the utilization of publicly provided goods such as health care facilities influence morbidity and mortality, especially in underutilized rural regions (e.g., Zang & Kanbur, 2005; Buchmueller, Jacobson, & Wold, 2006)

  • The results do not suggest that government ideology influences the scope of hospital infrastructure

  • We have focused on publicly provided goods as an important but yet hardly investigated policy outcome

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Summary

Introduction

Local differences in the utilization of publicly provided goods such as health care facilities influence morbidity and mortality, especially in underutilized rural regions (e.g., Zang & Kanbur, 2005; Buchmueller, Jacobson, & Wold, 2006). Politicians would seem to be well advised to provide public goods to gratify the needs of their constituencies which differ across space. There is still no evidence to show how politicians gratify the needs of their core supporters by providing public goods in urban and rural regions, and the subsequent consequences for spatial inequalities. [Figure 1 about here] We investigate how state government ideology influences the scope and the spatial distribution of publicly provided goods. We link self-compiled data measuring the scope and the spatial concentration of hospital infrastructure within the ten West German states between 1950 and 2014 to state government ideology, which is an outcome of state elections. Regression discontinuity (RD) design results show that government ideology influences the spatial distribution of facilities and, in particular, the urban-rural gap in public infrastructure. We propose that leftwing governments do so to gratify their more urban constituencies

Related literature
Institutional background
Empirical strategy
Results
Robustness
Conclusion
Growth rates Leftwing government Conventional RD
Including fixed effects Leftwing government

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