Local government areas that are controlled by the same party as national governments receive larger grants and have lower taxes.

What are the implications if parties that control local municipalities are the same as those that are in government nationally? Using data from Italy, Emanuele Bracco, Francesco Porcelli and Michela Redoano find that municipalities which are politically aligned with central government get more in government grants, and have lower taxes on average. Their mayors also have a better chance of re-election.