Analyzing the Performance of Local Government in Mexico: A Political Explanation of Municipal Budgetary Choices
AbstractThis paper analyzes the budgetary choices of municipal governments in Mexico. Using a panel data approach that includes most municipalities in the country throughout the 1990-2001 period, I investigate to what extent local democracy has stimulated municipal governments to increase their investments on basic infrastructure projects, rather than expanding their bureaucratic apparatuses. My findings suggest that only under a decentralized policy setting, the competitiveness of the electoral arena has a positive influence on the provision of local public goods. I also find evidence that basic infrastructure spending increases when local elections are held, and when the local mayor belongs to a different party than the state governor.
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Bibliographic InfoPaper provided by Center for U.S.-Mexican Studies, UC San Diego in its series University of California at San Diego, Center for U.S.-Mexican Studies with number qt3v39q4j0.
Date of creation: 19 Jan 2005
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- Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416.
- Alesina, Alberto & Hausmann, Ricardo & Hommes, Rudolf & Stein, Ernesto, 1999.
"Budget institutions and fiscal performance in Latin America,"
Journal of Development Economics,
Elsevier, vol. 59(2), pages 253-273, August.
- Stein, Ernesto & Hommes, Rudolf & Hausmann, Ricardo & Alesina, Alberto, 1999. "Budget Institutions and Fiscal Performance in Latin America," Scholarly Articles 4553021, Harvard University Department of Economics.
- Ricardo Hausmann & Alberto Alesina & Rudolf Hommes & Ernesto H. Stein, 1998. "Budget Institutions and Fiscal Performance in Latin America," Research Department Publications 4160, Inter-American Development Bank, Research Department.
- Alberto Alesina & Ricardo Hausmann & Rudolf Hommes & Ernesto Stein, 1996. "Budget Institutions and Fiscal Performance in Latin America," NBER Working Papers 5586, National Bureau of Economic Research, Inc.
- Nordhaus, William D, 1975. "The Political Business Cycle," Review of Economic Studies, Wiley Blackwell, vol. 42(2), pages 169-90, April.
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