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Tying Your Enemy’s Hands in Close Races: The Politics of Federal Transfers in Brazil

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  • Fernanda Brollo
  • Tommaso Nannicini

Abstract

This paper uses a quasi-experimental strategy to disclose utterly political reasons behind the allocation of intergovernmental transfers in a federal state. We apply a regression discontinuity design in close elections to identify the effect of political alignment on federal transfers to municipal governments in Brazil. We find that municipalities where the mayor is affiliated with the coalition of the Brazilian President receive larger (discretionary) infrastructure transfers by about 40% in preelection years. This effect is mainly driven by the fact that the federal government penalizes municipalities run by mayors from the opposition coalition who won by a narrow margin, thereby tying their hands for the next election.

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Bibliographic Info

Paper provided by IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University in its series Working Papers with number 358.

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Date of creation: 2010
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Handle: RePEc:igi:igierp:358

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  1. de Janvry, Alain & Finan, Frederico S. & Sadoulet, Elisabeth, 2010. "Local Electoral Incentives and Decentralized Program Performance," IZA Discussion Papers 5382, Institute for the Study of Labor (IZA).
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Cited by:
  1. Oppedisano, Veruska, 2011. "The (adverse) effects of expanding higher education: Evidence from Italy," Economics of Education Review, Elsevier, vol. 30(5), pages 997-1008, October.
  2. Zudenkova, Galina, 2011. "A political agency model of coattail voting," Journal of Public Economics, Elsevier, vol. 95(11), pages 1652-1660.
  3. Matthias Dahm & Amihai Glazer, 2013. "A Carrot and Stick Approach to Agenda-Setting," Discussion Papers 2013-10, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
  4. repec:cge:warwcg:160 is not listed on IDEAS
  5. Matthias Dahm & Amihai Glazer, 2012. "How An Agenda Setter Induces Legislators to Adopt Policies They Oppose," Working Papers 111211, University of California-Irvine, Department of Economics.
  6. Brollo, Fernanda & Troiano, Ugo, 2013. "What Happens When a Woman Wins an Election? Evidence from Close Races in Brazil," CAGE Online Working Paper Series 161, Competitive Advantage in the Global Economy (CAGE).
  7. Thushyanthan Baskaran, 2013. "Do bailouts buy votes? Evidence from a panel of Hessian municipalities," Economics of Governance, Springer, vol. 14(3), pages 257-278, August.
  8. Emilio Guterriez & Ruben Durante, 2013. "Fighting Crime with a Little Help from my Friends: Party Affiliation, Inter‐jurisdictional Cooperation and Crime in Mexico," Sciences Po publications 17, Sciences Po.
  9. Zudenkova, Galina, 2011. "A Model of Party Discipline in a Congress," Working Papers 2072/151813, Universitat Rovira i Virgili, Department of Economics.
  10. Emanuele Bracco & Francesco Porcelli & Michela Redoano, 2013. "Incumbent Effects and Partisan Alignment in Local Elections: A Regression Discontinuity Analysis Using Italian Data," CESifo Working Paper Series 4061, CESifo Group Munich.
  11. Leandro De Magalhães, 2012. "Incumbency Effects in Brazilian Mayoral Elections:A Regression Discontinuity Design Abstract: I use a regression discontinuity design to study incumbency effects in Brazilian mayoral elections. For ma," The Centre for Market and Public Organisation 12/284, Department of Economics, University of Bristol, UK.
  12. Marta Curto-Grau & Albert Solé-Ollé & Pilar Sorribas-Navarro, 2012. "Partisan targeting of inter-governmental transfers & state interference in local elections: evidence from Spain," Working Papers 2012/31, Institut d'Economia de Barcelona (IEB).
  13. Ronny Freier, 2011. "Incumbency as the Major Advantage: The Electoral Advantage for Parties of Incumbent Mayors," Discussion Papers of DIW Berlin 1147, DIW Berlin, German Institute for Economic Research.
  14. repec:spo:wpecon:info:hdl:2441/6ggbvnr6munghes9oaso1e0k4 is not listed on IDEAS

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