IDEAS home Printed from https://ideas.repec.org/p/bdr/region/260.html
   My bibliography  Save this paper

Political Alignment in the Time of Weak Parties: Electoral Advantages and Subnational Transfers in Colombia

Author

Listed:
  • Leonardo Bonilla-Mejía
  • Iván Higuera-Mendieta

    (Banco de la República)

Abstract

This paper explores the effect of alignment between local and national politics in a context of weak parties. Based on a regression discontinuity design in close elections, we find that, in absence of strong parties, presidential coalitions become the focal point of political alignment in Colombia. In fact, while parties provide almost no electoral advantages to their members, candidates aspiring to national positions get significantly more votes in municipalities governed by mayors aligned with the incoming presidential coalitions. In turn, aligned mayors receive additional discretionary transfers from the National Government to finance road investments. These discretionary transfers, however, do not translate into local economic growth.

Suggested Citation

  • Leonardo Bonilla-Mejía & Iván Higuera-Mendieta, 2017. "Political Alignment in the Time of Weak Parties: Electoral Advantages and Subnational Transfers in Colombia," Documentos de trabajo sobre Economía Regional y Urbana 260, Banco de la Republica de Colombia.
  • Handle: RePEc:bdr:region:260
    DOI: 10.32468/dtseru.260
    as

    Download full text from publisher

    File URL: https://doi.org/10.32468/dtseru.260
    Download Restriction: no

    File URL: https://libkey.io/10.32468/dtseru.260?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Bonet-Morón, Jaime Alfredo & Pérez-Valbuena, Gerson Javier & Ayala-García, Jhorland, 2016. "Contexto histórico y evolución del SGP en Colombia," Chapters, in: Bonet-Morón, Jaime Alfredo & Galvis-Aponte, Luis Armando (ed.), Sistemas de transferencias subnacionales : lecciones para una reforma en Colombia, chapter 5, pages 83-128, Banco de la Republica de Colombia.
    2. Bracco, Emanuele & Lockwood, Ben & Porcelli, Francesco & Redoano, Michela, 2015. "Intergovernmental grants as signals and the alignment effect: Theory and evidence," Journal of Public Economics, Elsevier, vol. 123(C), pages 78-91.
    3. Luis Ignacio Lozano-Espitia & Juan Manuel Julio-Román, 2015. "Fiscal Decentralization and Economic Growth: Evidence from Regional-Level Panel Data for Colombia," Borradores de Economia 865i, Banco de la Republica de Colombia.
    4. Juan R. Cuadrado-Roura & Patricio Aroca (ed.), 2013. "Regional Problems and Policies in Latin America," Advances in Spatial Science, Springer, edition 127, number 978-3-642-39674-8.
    5. Dey, Subhasish & Sen, Kunal, 2016. "Is Partisan Alignment Electorally Rewarding? Evidence from Village Council Elections in India," IZA Discussion Papers 9994, Institute of Labor Economics (IZA).
    6. Brender, Adi, 2003. "The effect of fiscal performance on local government election results in Israel: 1989-1998," Journal of Public Economics, Elsevier, vol. 87(9-10), pages 2187-2205, September.
    7. Sebastian Calonico & Matias D. Cattaneo & Rocio Titiunik, 2014. "Robust Nonparametric Confidence Intervals for Regression‐Discontinuity Designs," Econometrica, Econometric Society, vol. 82, pages 2295-2326, November.
    8. Brollo, Fernanda & Nannicini, Tommaso, 2012. "Tying Your Enemy's Hands in Close Races: The Politics of Federal Transfers in Brazil," American Political Science Review, Cambridge University Press, vol. 106(4), pages 742-761, November.
    9. 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.
    10. Ade, Florian & Freier, Ronny, 2013. "Divided government versus incumbency externality effect—Quasi-experimental evidence on multiple voting decisions," European Economic Review, Elsevier, vol. 64(C), pages 1-20.
    11. McCrary, Justin, 2008. "Manipulation of the running variable in the regression discontinuity design: A density test," Journal of Econometrics, Elsevier, vol. 142(2), pages 698-714, February.
    12. Levitt, Steven D & Snyder, James M, Jr, 1997. "The Impact of Federal Spending on House Election Outcomes," Journal of Political Economy, University of Chicago Press, vol. 105(1), pages 30-53, February.
    13. Andrew Leigh, 2008. "Bringing home the bacon: an empirical analysis of the extent and effects of pork-barreling in Australian politics," Public Choice, Springer, vol. 137(1), pages 279-299, October.
    14. Luis Armando Galvis & Adolfo Meisel, 2013. "Regional Inequalities and Regional Policies in Colombia: The Experience of the Last Two Decades," Advances in Spatial Science, in: Juan R. Cuadrado-Roura & Patricio Aroca (ed.), Regional Problems and Policies in Latin America, edition 127, chapter 0, pages 197-223, Springer.
    15. J. Vernon Henderson & Adam Storeygard & David N. Weil, 2012. "Measuring Economic Growth from Outer Space," American Economic Review, American Economic Association, vol. 102(2), pages 994-1028, April.
    16. Jean-Paul Faguet & Fabio Sánchez, 2014. "Decentralization and access to social services in Colombia," Public Choice, Springer, vol. 160(1), pages 227-249, July.
    17. Oana Borcan, 2016. "The illicit beneficts of local party alignment in national elections," University of East Anglia School of Economics Working Paper Series 2016-10, School of Economics, University of East Anglia, Norwich, UK..
    18. Leopoldo Fergusson & Carlos Molina & James A. Robinson & Juan F. Vargas, 2017. "The Long Shadow of the Past: Political Economy of Regional Inequality in Colombia," Documentos CEDE 15445, Universidad de los Andes, Facultad de Economía, CEDE.
    19. Cadot, Olivier & Roller, Lars-Hendrik & Stephan, Andreas, 2006. "Contribution to productivity or pork barrel? The two faces of infrastructure investment," Journal of Public Economics, Elsevier, vol. 90(6-7), pages 1133-1153, August.
    20. Doll, Christopher N.H. & Muller, Jan-Peter & Morley, Jeremy G., 2006. "Mapping regional economic activity from night-time light satellite imagery," Ecological Economics, Elsevier, vol. 57(1), pages 75-92, April.
    21. Ramírez, Juan Mauricio & Díaz, Yadira & Bedoya, Juan Guillermo, 2017. "Property Tax Revenues and Multidimensional Poverty Reduction in Colombia: A Spatial Approach," World Development, Elsevier, vol. 94(C), pages 406-421.
    22. Yogesh Uppal, 2009. "The disadvantaged incumbents: estimating incumbency effects in Indian state legislatures," Public Choice, Springer, vol. 138(1), pages 9-27, January.
    23. Galindo-Silva, Hector, 2015. "New parties and policy outcomes: Evidence from Colombian local governments," Journal of Public Economics, Elsevier, vol. 126(C), pages 86-103.
    24. Drazen, Allan & Eslava, Marcela, 2010. "Electoral manipulation via voter-friendly spending: Theory and evidence," Journal of Development Economics, Elsevier, vol. 92(1), pages 39-52, May.
    25. Jaime Bonet & Karelys Guzmán Finol & Joaquín Urrego & Juan Miguel Villa, 2014. "Efectos del nuevo Sistema General de Regalías sobre el desempeño fiscal municipal: un análisis dosis-respuesta," Documentos de trabajo sobre Economía Regional y Urbana 203, Banco de la Republica de Colombia.
    26. Klašnja, Marko & Titiunik, Rocío, 2017. "The Incumbency Curse: Weak Parties, Term Limits, and Unfulfilled Accountability," American Political Science Review, Cambridge University Press, vol. 111(1), pages 129-148, February.
    27. Dillinger, William & Webb, Steven B., 1999. "Decentralization and fiscal management in Colombia," Policy Research Working Paper Series 2122, The World Bank.
    28. Miguel Ángel Borrella Mas, 2015. "Partisan Alignment and Political Corruption. Theory and Evidence from Spain Job Market Paper," Working Papers. Serie AD 2015-07, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    29. repec:wiw:wiwrsa:ersa13p182 is not listed on IDEAS
    30. Juan Mauricio Ramírez & Juan Guillermo Bedoya, 2014. "Regalías directas por hidrocarburos y esfuerzo fiscal municipal en Colombia," Coyuntura Económica, Fedesarrollo, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Leopoldo Fergusson & Arturo Harker & Carlos Molina & Juan Camilo Yamín, 2023. "Political incentives and corruption evidence from ghost students," Documentos CEDE 20732, Universidad de los Andes, Facultad de Economía, CEDE.
    2. Savu, A., 2021. "Reverse Political Coattails under a Technocratic Government: New Evidence on the National Electoral Benefits of Local Party Incumbency," Cambridge Working Papers in Economics 2121, Faculty of Economics, University of Cambridge.
    3. Leonardo Bonilla-Mejía & Iván Higuera-Mendieta, 2018. "Notas sobre la economía política del Caribe colombiano," Revista Economía y Región, Universidad Tecnológica de Bolívar, vol. 12(2), pages 7-41, December.
    4. Bonet-Morón, Jaime & Pérez-Valbuena, Gerson Javier & Marín-Llanes, Lucas, 2020. "Oil shocks and subnational public investment: The role of institutions in regional resource curse," Energy Economics, Elsevier, vol. 92(C).
    5. Clark Granger-Castaño & Yurany Hernández-Turca & Carlos Murcia-Bustos & Lisseth Yaya-Garzón, 2018. "Ciclo político en las finanzas de los gobiernos regionales de Colombia 1998-2014," Borradores de Economia 1044, Banco de la Republica de Colombia.
    6. Jaime Bonet-Morón & Gerson Javier Pérez-Valbuena & Lucas Marín-Llanes, 2019. "Oil booms and subnational public investment: a case-study for Colombia," Documentos de trabajo sobre Economía Regional y Urbana 283, Banco de la Republica de Colombia.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Savu, A., 2021. "Reverse Political Coattails under a Technocratic Government: New Evidence on the National Electoral Benefits of Local Party Incumbency," Cambridge Working Papers in Economics 2121, Faculty of Economics, University of Cambridge.
    2. Thushyanthan Baskaran & Sonia Bhalotra & Brian Min & Yogesh Uppal, 2024. "Women legislators and economic performance," Journal of Economic Growth, Springer, vol. 29(2), pages 151-214, June.
    3. Makarin, Alexey & Piqué, Ricardo & Aragón, Fernando, 2020. "National or sub-national parties: Does party geographic scope matter?," Journal of Development Economics, Elsevier, vol. 146(C).
    4. Luigi Marattin & Tommaso Nannicini & Francesco Porcelli, 2022. "Revenue vs expenditure based fiscal consolidation: the pass-through from federal cuts to local taxes," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 29(4), pages 834-872, August.
    5. Kantorowicz, Jarosław & Köppl–Turyna, Monika, 2019. "Disentangling the fiscal effects of local constitutions," Journal of Economic Behavior & Organization, Elsevier, vol. 163(C), pages 63-87.
    6. Thushyanthan Baskaran & Zohal Hessami, 2017. "Political alignment and intergovernmental transfers in parliamentary systems: evidence from Germany," Public Choice, Springer, vol. 171(1), pages 75-98, April.
    7. Prakash, Nishith & Rockmore, Marc & Uppal, Yogesh, 2019. "Do criminally accused politicians affect economic outcomes? Evidence from India," Journal of Development Economics, Elsevier, vol. 141(C).
    8. Kammas, Pantelis & Poulima, Maria & Sarantides, Vassilis, 2023. "Fueling the party machine: Evidence from Greece during Metapolitefsi," Explorations in Economic History, Elsevier, vol. 90(C).
    9. Lee, Dongwon & Min, Sujin & Park, Sangwon, 2024. "Political budget cycle and the alignment effect: Evidence from South Korea," European Journal of Political Economy, Elsevier, vol. 81(C).
    10. Muraközy, Balázs & Telegdy, Álmos, 2016. "Political incentives and state subsidy allocation: Evidence from Hungarian municipalities," European Economic Review, Elsevier, vol. 89(C), pages 324-344.
    11. Gamalerio, Matteo, 2020. "Do national political parties matter? Evidence from Italian municipalities," European Journal of Political Economy, Elsevier, vol. 63(C).
    12. Carozzi, Felipe & Repetto, Luca, 2019. "Distributive politics inside the city? The political economy of Spain's Plan E," Regional Science and Urban Economics, Elsevier, vol. 75(C), pages 85-106.
    13. Leopoldo Fergusson & Arturo Harker & Carlos Molina & Juan Camilo Yamín, 2023. "Political incentives and corruption evidence from ghost students," Documentos CEDE 20732, Universidad de los Andes, Facultad de Economía, CEDE.
    14. Cavalcanti, Francisco, 2018. "Voters sometimes provide the wrong incentives. The lesson of the Brazilian drought industry," MPRA Paper 88317, University Library of Munich, Germany.
    15. Miguel Ángel Borrella-Mas & Martin Rode, 2021. "Love is blind: partisan alignment and political corruption in Spain," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 12(3), pages 423-451, September.
    16. Kauder, Björn & Potrafke, Niklas & Reischmann, Markus, 2016. "Do politicians reward core supporters? Evidence from a discretionary grant program," European Journal of Political Economy, Elsevier, vol. 45(C), pages 39-56.
    17. Kauder, Björn & Björn, Kauder & Niklas, Potrafke & Markus, Reischmann, 2016. "Do politicians gratify core supporters? Evidence from a discretionary grant program," VfS Annual Conference 2016 (Augsburg): Demographic Change 145509, Verein für Socialpolitik / German Economic Association.
    18. Alexandru Savu, 2024. "Intergovernmental alignment and the electoral value of mayors: reverse coattails in an unexpected technocracy," Public Choice, Springer, vol. 200(1), pages 43-64, July.
    19. Lara E., Bernardo & Toro M., Sergio, 2019. "Tactical distribution in local funding: The value of an aligned mayor," European Journal of Political Economy, Elsevier, vol. 56(C), pages 74-89.
    20. Lehmann, M. Christian & Matarazzo, Hellen, 2019. "Voters’ response to in-kind transfers: Quasi-experimental evidence from prescription drug cost-sharing in Brazil," Economics Letters, Elsevier, vol. 184(C).

    More about this item

    Keywords

    Political alignment; elections; subnational transfers; regression discontinuity;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bdr:region:260. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Clorith Angélica Bahos Olivera (email available below). General contact details of provider: https://edirc.repec.org/data/brcgvco.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.