Electoral Timing Matters? Field Experiment on U.S. Incentives Shows Nuances

Did the timing of elections influence local economic development policies? We conducted a field experiment across over 3,000 U.S. municipalities to investigate this.

Method:

• Legally incorporated a consultancy firm and posed inquiries on behalf of a fictional investor seeking municipal incentives.
• Tested whether pre- or post-election periods affected the likelihood of local governments offering investment incentives.

Findings:

• Overall results showed no significant difference in incentive offers based on election timing. • However, analysis limited to manufacturing-focused municipalities suggests an effect does exist here.
• Additional observational insights indicate that executive elections and partisanship may correlate with these policies.

Why It Matters:

This research highlights the complex interplay between electoral politics and economic policy implementation at local levels.