TY - RPRT AU - Shigeoka, Hitoshi AU - Watanabe, Yasutora TI - Policy Diffusion through Elections PY - 2023/Jun/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 16275 UR - https://www.iza.org/publications/dp16275 AB - Staggered difference-in-differences designs are pervasive in policy evaluations but little is known about the mechanisms of policy diffusion: How and why do such policies spread across jurisdictions? In this study, we highlight the role of elections in policy diffusion in settings where municipal elections are asynchronous due to historical reasons. First, we empirically show the presence of policy diffusion using neighbors' election cycles as instruments for neighbors' policy adoption. Second, we further demonstrate interactions of municipalities' election cycles with neighbors' adoption and show that they follow neighbors' policy only during their own election timing, indicating that policy diffuses through elections. KW - policy diffusion KW - elections KW - subsidy KW - child healthcare KW - political budget cycles ER -