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Political Alignment in the Time of Weak Parties: Electoral Advantages and Subnational Transfers in Colombia

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  • Leonardo Bonilla-Mejía
  • Iván Higuera-Mendieta

    (Banco de la República)

Abstract

This paper explores the effect of alignment between local and national politics in a context of weak parties. Based on a regression discontinuity design in close elections, we find that, in absence of strong parties, presidential coalitions become the focal point of political alignment in Colombia. In fact, while parties provide almost no electoral advantages to their members, candidates aspiring to national positions get significantly more votes in municipalities governed by mayors aligned with the incoming presidential coalitions. In turn, aligned mayors receive additional discretionary transfers from the National Government to finance road investments. These discretionary transfers, however, do not translate into local economic growth.

Suggested Citation

  • Leonardo Bonilla-Mejía & Iván Higuera-Mendieta, 2017. "Political Alignment in the Time of Weak Parties: Electoral Advantages and Subnational Transfers in Colombia," Documentos de trabajo sobre Economía Regional y Urbana 260, Banco de la Republica de Colombia.
  • Handle: RePEc:bdr:region:260
    DOI: 10.32468/dtseru.260
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    Cited by:

    1. Leopoldo Fergusson & Arturo Harker & Carlos Molina & Juan Camilo Yamín, 2023. "Political incentives and corruption evidence from ghost students," Documentos CEDE 20732, Universidad de los Andes, Facultad de Economía, CEDE.
    2. Clark Granger-Castaño & Yurany Hernández-Turca & Carlos Murcia-Bustos & Lisseth Yaya-Garzón, 2018. "Ciclo político en las finanzas de los gobiernos regionales de Colombia 1998-2014," Borradores de Economia 1044, Banco de la Republica de Colombia.
    3. Savu, A., 2021. "Reverse Political Coattails under a Technocratic Government: New Evidence on the National Electoral Benefits of Local Party Incumbency," Cambridge Working Papers in Economics 2121, Faculty of Economics, University of Cambridge.
    4. Jaime Bonet-Morón & Gerson Javier Pérez-Valbuena & Lucas Marín-Llanes, 2019. "Oil booms and subnational public investment: a case-study for Colombia," Documentos de trabajo sobre Economía Regional y Urbana 283, Banco de la Republica de Colombia.
    5. Leonardo Bonilla-Mejía & Iván Higuera-Mendieta, 2018. "Notas sobre la economía política del Caribe colombiano," Revista Economía y Región, Universidad Tecnológica de Bolívar, vol. 12(2), pages 7-41, December.
    6. Bonet-Morón, Jaime & Pérez-Valbuena, Gerson Javier & Marín-Llanes, Lucas, 2020. "Oil shocks and subnational public investment: The role of institutions in regional resource curse," Energy Economics, Elsevier, vol. 92(C).

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    More about this item

    Keywords

    Political alignment; elections; subnational transfers; regression discontinuity;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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