Does the System of Allocation of Intergovernmental Transfers in Senegal Eliminate Politically Motivated Targeting?
While there is a large body of literature on the determinants of allocation of intergovernmental fiscal transfers in developed countries, this kind of study is still very limited for developing countries, especially Sub-Saharan countries. Using an original micro-level public finance panel data from Senegal, we address three issues: (1) Does the Senegalese allocation system of fiscal transfers conform to the guidance of normative theory, in particular, to the equity principle? (2) Does this allocation system eliminate politically motivated targeting of transfers? (3) If not, what kind of political factors explain the horizontal allocation of fiscal resources? By rigorously estimating panel data for 67 local governments (communes) from 1997 to 2009, our results tend to show that equity concerns do not affect the allocation of intergovernmental grants in Senegal, leading to the conclusion that the resources distribution system does not comply with the dictates of normative theory. Moreover, we find evidence that political considerations influence the horizontal allocation of transfers. In particular, our analysis suggests that the distribution of central resources follows pattern of tactical redistribution more than patronage, swing communes being targeted while partisan communes are not. Copyright 2012 , Oxford University Press.
Volume (Year): 21 (2012)
Issue (Month): 2 (March)
|Contact details of provider:|| Postal: |
Phone: +44-(0)1865 271084
Fax: 01865 267 985
Web page: http://www.jae.oupjournals.org/
More information through EDIRC
|Order Information:||Web: http://www.oup.co.uk/journals|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Steven A. Meyer & Shigeto Naka, 1999. "The Determinants Of Japanese Local-Benefit Seeking," Contemporary Economic Policy, Western Economic Association International, vol. 17(1), pages 87-96, 01.
- Albouy, David, 2012.
"Evaluating the efficiency and equity of federal fiscal equalization,"
Journal of Public Economics,
Elsevier, vol. 96(9-10), pages 824-839.
- David Albouy, 2010. "Evaluating the Efficiency and Equity of Federal Fiscal Equalization," NBER Working Papers 16144, National Bureau of Economic Research, Inc.
- Andrew Worthington & Brian Dollery, 1998.
"The political determination of intergovernmental grants in Australia,"
Springer, vol. 94(3), pages 299-315, March.
- Worthington, Andrew C & Dollery, Brian E, 1998. " The Political Determination of Intergovernmental Grants in Australia," Public Choice, Springer, vol. 94(3-4), pages 299-315, March.
- Shawn A. Cole, 2008.
"Fixing Market Failures or Fixing Elections? Agricultural Credit in India,"
Harvard Business School Working Papers
09-001, Harvard Business School.
- Shawn Cole, 2009. "Fixing Market Failures or Fixing Elections? Agricultural Credit in India," American Economic Journal: Applied Economics, American Economic Association, vol. 1(1), pages 219-50, January.
- Case, A, 1996.
"Election Goals and Income Redistribution : Recent Evidence from Albania,"
177, Princeton, Woodrow Wilson School - Public and International Affairs.
- Case, Anne, 2001. "Election goals and income redistribution: Recent evidence from Albania," European Economic Review, Elsevier, vol. 45(3), pages 405-423, March.
- Anne Case, 1997. "Election Goals and Income Redistribution: Recent Evidence From Albania," Working Papers 227, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
- Case, A., 1997. "Election Goals and Income Redistribution: Recent Evidence from Albania," Papers 177, Princeton, Woodrow Wilson School - Development Studies.
- Richard Blundell & Steve Bond, 1995.
"Initial conditions and moment restrictions in dynamic panel data models,"
IFS Working Papers
W95/17, Institute for Fiscal Studies.
- Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
- Blundell, R. & Bond, S., 1995. "Initial Conditions and Moment Restrictions in Dynamic Panel Data Models," Economics Papers 104, Economics Group, Nuffield College, University of Oxford.
- R Blundell & Steven Bond, . "Initial conditions and moment restrictions in dynamic panel data model," Economics Papers W14&104., Economics Group, Nuffield College, University of Oxford.
- Bird, Richard M. & Smart, Michael, 2002. "Intergovernmental Fiscal Transfers: International Lessons for Developing Countries," World Development, Elsevier, vol. 30(6), pages 899-912, June.
- Pranab Bardhan, 2002. "Decentralization of Governance and Development," Journal of Economic Perspectives, American Economic Association, vol. 16(4), pages 185-205, Fall.
- Dennis Patrick Leyden, 1992. "Donor-Determined Intergovernmental Grants Structure," Public Finance Review, , vol. 20(3), pages 321-337, July.
- Wiji Arulampalam & Sugato Dasgupta & Amrita Dhillon & Bhaskar Dutta, 2008.
"Electoral goals and center-state transfers: A Theoretical model and empirical evidence from India,"
Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers
08-14, Indian Statistical Institute, New Delhi, India.
- Arulampalam, Wiji & Dasgupta, Sugato & Dhillon, Amrita & Dutta, Bhaskar, 2009. "Electoral goals and center-state transfers: A theoretical model and empirical evidence from India," Journal of Development Economics, Elsevier, vol. 88(1), pages 103-119, January.
- Arulampalam, Wiji & Dasgupta, Sugato & Dhillon, Amrita & Dutta, Bhaskar, 2008. "Electoral Goals and Center-State Transfers: A Theoretical Model and Empirical Evidence from India," IZA Discussion Papers 3376, Institute for the Study of Labor (IZA).
- Pereira, Paulo T C, 1996. " A Politico-economic Approach to Intergovernmental Lump-Sum Grants," Public Choice, Springer, vol. 88(1-2), pages 185-201, July.
- David Roodman, 2009.
"A Note on the Theme of Too Many Instruments,"
Oxford Bulletin of Economics and Statistics,
Department of Economics, University of Oxford, vol. 71(1), pages 135-158, 02.
- Mel Bungey & Peter Kenyon & Philip J. Grossman, 1991. "Explaining intergovernmental grants: Australian evidence," Monash Economics Working Papers archive-14, Monash University, Department of Economics.
- Jameson Boex & Jorge Martinez-Vazquez, 2005. "The Determinants of the Incidence of Intergovernmental Grants: A Survey of the International Experience," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0509, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
- Grossman, Philip J, 1994.
" A Political Theory of Intergovernmental Grants,"
Springer, vol. 78(3-4), pages 295-303, March.
- Tranchant, Jean-Pierre, 2010. "Does Fiscal Decentralization Dampen All Ethnic Conflicts? The heterogeneous Impact of Fiscal Decentralization on Local Minorities and Local Majorities," MPRA Paper 22776, University Library of Munich, Germany.
- Dahlberg, Matz & Johansson, Eva, 1999.
"On the Vote Purchasing Behavior of Incumbent Governments,"
Working Paper Series
1999:24, Uppsala University, Department of Economics.
- Dahlberg, M. & Johansson, E., 1999. "On the Vote Purchasing Behavior of Incumbent Governments," Papers 1999:24, Uppsala - Working Paper Series.
- David E. Sahn & David Stifel, 2003. "Exploring Alternative Measures of Welfare in the Absence of Expenditure Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 49(4), pages 463-489, December.
- Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-26, November.
- Alberto Porto & Pablo Sanguinetti, 2001. "Political Determinants of Intergovernmental Grants: Evidence From Argentina," Economics and Politics, Wiley Blackwell, vol. 13(3), pages 237-256, November.
- Anderson, Gary M & Tollison, Robert D, 1991. "Congressional Influence and Patterns of New Deal Spending, 1933-1939," Journal of Law and Economics, University of Chicago Press, vol. 34(1), pages 161-75, April.
- Jameson Boex, 2003. "The incidence of local government allocations in Tanzania," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0311, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
- Linda Veiga & Maria Pinho, 2007. "The political economy of intergovernmental grants: Evidence from a maturing democracy," Public Choice, Springer, vol. 133(3), pages 457-477, December.
- Johansson, Eva, 2003. "Intergovernmental grants as a tactical instrument: empirical evidence from Swedish municipalities," Journal of Public Economics, Elsevier, vol. 87(5-6), pages 883-915, May.
- Banful, Afua Branoah, 2011. "Do formula-based intergovernmental transfer mechanisms eliminate politically motivated targeting? Evidence from Ghana," Journal of Development Economics, Elsevier, vol. 96(2), pages 380-390, November.
- Wright, Gavin, 1974. "The Political Economy of New Deal Spending: An Econometric Analysis," The Review of Economics and Statistics, MIT Press, vol. 56(1), pages 30-38, February.
- Khemani, Stuti, 2007. "Does delegation of fiscal policy to an independent agency make a difference? Evidence from intergovernmental transfers in India," Journal of Development Economics, Elsevier, vol. 82(2), pages 464-484, March.
- Deon Filmer & Lant Pritchett, 2001. "Estimating Wealth Effects Without Expenditure Data—Or Tears: An Application To Educational Enrollments In States Of India," Demography, Springer, vol. 38(1), pages 115-132, February.
When requesting a correction, please mention this item's handle: RePEc:oup:jafrec:v:21:y:2012:i:2:p:167-191. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.