Universität zu Köln

Mertens, Armin ORCID: 0000-0001-7667-5029, Trampusch, Christine ORCID: 0000-0003-1024-2065, Fastenrath, Florian ORCID: 0000-0002-1939-9141 and Wangemann, Rebecca (2021). The political economy of local government financialization and the role of policy diffusion. Regulation & Governance, 15 (2). pp. 370-387. HOBOKEN: WILEY. ISSN 1748-5991

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Abstract

By analyzing why English local governments have made extensive use of long-term market loans with embedded derivatives, this paper seeks to contribute to the growing literature on local government financialization. Using an original, large-N panel dataset for the period from 1998 to 2014, we show that the configuration of the local political economy is an important driver of financialization processes: a Labour Party majority as well as fiscal and economic stress make it more likely that councils adopt risky financial instruments. As the use of financial innovations has also diffused geographically, policy diffusion impacts local governments as well. Highlighting the conditional effect of finance sector power, which only increases the use of financial innovations in very large councils, as well as the temporal dimension of fiscal and economic stress, we create ample avenues for further research.

Item Type:	Journal Article
Creators:	Creators Email ORCID ORCID Put Code Mertens, Armin UNSPECIFIED orcid.org/0000-0001-7667-5029 UNSPECIFIED Trampusch, Christine UNSPECIFIED orcid.org/0000-0003-1024-2065 UNSPECIFIED Fastenrath, Florian fastenrath@wiso.uni-koeln.de orcid.org/0000-0002-1939-9141 UNSPECIFIED Wangemann, Rebecca UNSPECIFIED UNSPECIFIED UNSPECIFIED
URN:	urn:nbn:de:hbz:38-131102
DOI:	10.1111/rego.12285
Journal or Publication Title:	Regulation & Governance
Volume:	15
Number:	2
Page Range:	pp. 370-387
Date:	2021
Publisher:	WILEY
Place of Publication:	HOBOKEN
ISSN:	1748-5991
Language:	English
Faculty:	Faculty of Management, Economy and Social Sciences
Divisions:	Faculty of Management, Economics and Social Sciences > Social Sciences > Political Science > Cologne Center for Comparative Politics
Subjects:	Social sciences Political science Public administration
Uncontrolled Keywords:	Keywords Language PARTISAN POLITICS; STRUCTURAL POWER; GLOBAL DIFFUSION; WALL-STREET; INNOVATIONS; STATES; FINANCIALISATION; FINANCE; MODEL; MUNICIPALITIES Multiple languages Law; Political Science; Public Administration Multiple languages
Refereed:	Yes
URI:	http://kups.ub.uni-koeln.de/id/eprint/13110