Does partisan alignment affect the electoral reward of intergovernmental transfers?
AbstractIn this paper we test the hypothesis that intergovernmental grants allocated to co-partisans buy more political support than grants allocated to local governments controlled by opposition parties. We use a rich Spanish database containing information about the grants received by 617 municipalities during the period 1993-2003 from two different upper-tier governments (Regional and Upper-local), as well as data of municipal voting behaviour at three electoral contests held at the different layers of government during this period. Therefore, we are able to estimate two different vote equations, analysing the effects of grants given to aligned and unaligned municipalities on the vote share of the incumbent party/parties at the regional and local elections. We account for the endogeneity of grants by instrumenting them with the average amount of grants distributed by upper-layer governments. The results suggest that grants given to co-partisans buy some political support, but that grants given to the opposition do not bring any votes, suggesting that the grantee reaps as much political credit from intergovernmental grants as the grantor.
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Bibliographic InfoPaper provided by Universitat de Barcelona. Espai de Recerca en Economia in its series Working Papers in Economics with number 206.
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Date of creation: 2008
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Other versions of this item:
- Albert Solé-Ollé & Pilar Sorribas-Navarro, 2008. "Does partisan alignment affect the electoral reward of intergovernmental transfers?," Working Papers 2008/2, Institut d'Economia de Barcelona (IEB).
- Albert Solé-Ollé & Pilar Sorribas-Navarro, 2008. "Does Partisan Alignment Affect the Electoral Reward of Intergovernmental Transfers?," CESifo Working Paper Series 2335, CESifo Group Munich.
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-11-25 (All new papers)
- NEP-CDM-2008-11-25 (Collective Decision-Making)
- NEP-GEO-2008-11-25 (Economic Geography)
- NEP-POL-2008-11-25 (Positive Political Economics)
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