Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/245517 
Year of Publication: 
2021
Series/Report no.: 
CESifo Working Paper No. 9336
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
We examine how populist governments influence political culture and economic outcomes. Some Austrian communities are governed by far-right populist mayors, directly elected by a majority of voters. We exploit close elections and find that the electorate becomes more polarized under populist mayors. However, polarization is not limited to politics. A major innovation of our study is using data on team members of local football teams. Our results show that diversity in local football teams decreases when populists are in power, indicating that populists infiltrate the civic society. When it comes to economic outcomes, migration and budget transparency decrease under populist governments.
Subjects: 
populism
far-right politics
partisan politics
polarization
immigration
economic policy
local government
budget transparency
JEL: 
D72
P16
H72
Z18
Document Type: 
Working Paper
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