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Fiscal policy and reelection in Brazilian municipalities

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  • Sergio Naruhiko Sakurai
  • Naercio Aquino Menezes Filho

Abstract

This paper uses a new panel of more than two thousand Brazilian municipalities over thirteen years to analyze the influence of public expenditures on the probability of mayors’ reelection. We examine Brazilian municipal elections from 1988 to 2000 using a logit fixed effects model. The results suggest that higher public expenditures executed during the whole political term increase the probability of reelection of Brazilian mayors. In particular, higher capital spending over the years preceding elections and current expenditures in election years are beneficial to Brazilian incumbent mayors.

Suggested Citation

  • Sergio Naruhiko Sakurai & Naercio Aquino Menezes Filho, 2008. "Fiscal policy and reelection in Brazilian municipalities," Business and Economics Working Papers 051, Unidade de Negocios e Economia, Insper.
    • Handle: RePEc:aap:wpaper:051
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    Cited by:

    1. Ferraresi, Massimiliano & Rizzo, Leonzio & Secomandi, Riccardo, 2024. "Electoral incentives to target investment in roads: Evidence from Italian municipalities," European Journal of Political Economy, Elsevier, vol. 85(C).
    2. Shi, Xiangyu, 2025. "Political risk dynamics, leaders’ capability, and economic performance: New evidence of national executives," Economics Letters, Elsevier, vol. 246(C).

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