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Political Determinants of Intergovernmental Grants: Evidence From Argentina

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Author Info
Alberto Porto
Pablo Sanguinetti

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Abstract

This paper explores the determinants of federal grants allocation across provincial states in Argentina. Our analysis suggests that the redistributive pattern implicit in the federal system of intergovernmental grants cannot be explained on normative grounds exclusively. In order to understand the rationale behind federal grants distribution, a positive approach could render better results. Specifically, we claim that the distribution of federal grants could be associated with political variables such as the political representation of jurisdictions at Congress. The econometric analysis suggests that the significant disparity observed in the per capita representation across different provinces is an important factor explaining the allocation of those transfers. In this respect, overrepresented provinces, both at the senate and at the lower chamber, have received, on average, higher resources from the national government compared to more populous and less represented states. These results are consistent with those observed in other countries. Copyright 2001 Blackwell Publishers Ltd.

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Article provided by Blackwell Publishing in its journal Economics and Politics.

Volume (Year): 13 (2001)
Issue (Month): 3 (November)
Pages: 237-256
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Handle: RePEc:bla:ecopol:v:13:y:2001:i:3:p:237-256

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  1. Hans Pitlik & Friedrich Schneider & Harald Strotmann, 2005. "Legislative Malapportionment and the Politicization of Germany's Intergovernmental Transfer System," IAW Discussion Papers 19, Institut für Angewandte Wirtschaftsforschung (IAW). [Downloadable!]
    Other versions:
  2. José Bercoff & Osvaldo Meloni, 2009. "Federal budget allocation in an emergent democracy: evidence from Argentina," Economics of Governance, Springer, vol. 10(1), pages 65-83, January. [Downloadable!] (restricted)
  3. Jameson Boex, 2003. "The incidence of local government allocations in Tanzania," International Studies Program Working Paper Series, at AYSPS, GSU paper0311, International Studies Program, Andrew Young School of Policy Studies, Georgia State University. [Downloadable!]
  4. Hans Pitlik, 2004. "Zur Politischen Rationalitaet der Finanzausgleichsreform in Deutschland," Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim 239/2004, Department of Economics, University of Hohenheim, Germany. [Downloadable!]
  5. Picci, Lucio & Golden, Miriam, 2007. "Pork Barrel Politics in Postwar Italy, 1953–1994," MPRA Paper 5626, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  6. Jorge P. Gordin, 2007. "Patronage-Preserving Federalism? Legislative Malapportionment and Subnational Fiscal Policies in Argentina," GIGA Working Paper Series 52, GIGA German Institute of Global and Area Studies. [Downloadable!]
  7. Stuti Khemani, 2004. "The Political Economy of Equalization Transfers," International Studies Program Working Paper Series, at AYSPS, GSU paper0413, International Studies Program, Andrew Young School of Policy Studies, Georgia State University. [Downloadable!]
  8. Rajashri Chakrabarti, 2005. "Gains from a Redrawing of Political Boundaries: Evidence from State Reorganization in India," Others 0512002, EconWPA. [Downloadable!]
  9. Linda Gonçalves Veiga & Maria Manuel Pinho, 2005. "The Political Economy of Portuguese Intergovernmental Grants," NIPE Working Papers 8/2005, NIPE - Universidade do Minho. [Downloadable!]
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