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Rainfall Shocks, Local Revenues, and Intergovernmental Transfer in Mali

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  • Sanoh, Aly

Abstract

This paper explores the implications of rainfall shocks for municipal tax revenues and intergovernmental transfers in Mali. I found that exogenous phenomena such as weather, not under the control of local actors, could affect the way de facto decentralization plays out by influencing the fiscal capacity of local governments. In a panel data of 692 municipalities from 2000 to 2008, I found that rainfall shocks, through the fluctuations they induce in agricultural incomes, affect revenue collection of local governments, and in turn drive further revenues local governments receive through transfer by the central government.

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  • Sanoh, Aly, 2015. "Rainfall Shocks, Local Revenues, and Intergovernmental Transfer in Mali," World Development, Elsevier, vol. 66(C), pages 359-370.
    • Handle: RePEc:eee:wdevel:v:66:y:2015:i:c:p:359-370
    DOI: 10.1016/j.worlddev.2014.08.022
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    2. Takaaki Masaki, 2016. "The impact of intergovernmental transfers on local revenue generation in Africa: Evidence from Tanzania," WIDER Working Paper Series wp-2016-113, World Institute for Development Economic Research (UNU-WIDER).
    3. Palacios, Paola & Rojas-Velásquez, Libardo, 2023. "Impact of weather shocks on educational outcomes in the municipalities of Colombia," International Journal of Educational Development, Elsevier, vol. 101(C).
    4. Masaki, Takaaki, 2018. "The impact of intergovernmental transfers on local revenue generation in Sub-Saharan Africa: Evidence from Tanzania," World Development, Elsevier, vol. 106(C), pages 173-186.
    5. Rodrigo Pérez-Silva & Mayarí Castillo & Chiara Cazzuffi, 2023. "Droughts and Local Labor Markets. Studying Heterogenous Effects on Women and Indigenous People in Chile," Economics of Disasters and Climate Change, Springer, vol. 7(2), pages 281-302, July.
    6. Lint Barrage, 2024. "Climate Change Impacts on Public Finances Around the World," CESifo Working Paper Series 11443, CESifo.
    7. Desbureaux, Sébastien & Rodella, Aude-Sophie, 2019. "Drought in the city: The economic impact of water scarcity in Latin American metropolitan areas," World Development, Elsevier, vol. 114(C), pages 13-27.
    8. Takaaki Masaki, 2016. "The impact of intergovernmental transfers on local revenue generation in Africa: Evidence from Tanzania," WIDER Working Paper Series 113, World Institute for Development Economic Research (UNU-WIDER).

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