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

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Author Info

  • Brollo, Fernanda

    ()
    (Universidad de Alicante)

  • Nannicini, Tommaso

    ()
    (Bocconi University)

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 pre-election 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 Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5698.

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Length: 49 pages
Date of creation: May 2011
Date of revision:
Publication status: published in: American Political Science Review, 2012, 106 (4), 742-761
Handle: RePEc:iza:izadps:dp5698

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Keywords: political alignment; regression discontinuity; federal transfers;

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References

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  1. Alain de Janvry & Frederico Finan & Elisabeth Sadoulet, 2010. "Local Electoral Incentives and Decentralized Program Performance," NBER Working Papers 16635, National Bureau of Economic Research, Inc.
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Cited by:
  1. 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).
  2. Baskaran, Thushyanthan, 2013. "Do bailouts buy votes? Evidence from a panel of Hessian municipalities," MPRA Paper 48228, University Library of Munich, Germany.
  3. Zudenkova, Galina, 2011. "A political agency model of coattail voting," Journal of Public Economics, Elsevier, vol. 95(11), pages 1652-1660.
  4. Zudenkova, Galina, 2011. "A Model of Party Discipline in a Congress," Working Papers 2072/151813, Universitat Rovira i Virgili, Department of Economics.
  5. 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.
  6. Veruska Oppedisano, 2009. "The (Adverse) Effects of Expanding Higher Education: Evidence from Italy," Working Papers 200945, Geary Institute, University College Dublin.
  7. repec:spo:wpecon:info:hdl:2441/6ggbvnr6munghes9oaso1e0k4 is not listed on IDEAS
  8. 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.
  9. 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.
  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. 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.
  12. 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.
  13. Brollo, Fernanda & Troiano, Ugo, 2013. "What Happens When a Woman Wins an Election? Evidence from Close Races in Brazil," MPRA Paper 52244, University Library of Munich, Germany.
  14. repec:cge:warwcg:160 is not listed on IDEAS

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