The Effects of Partisan Alignment on the Allocation of Intergovernmental Transfers. Differences-in-Differences Estimates for Spain
In this paper we test the hypothesis that municipalities aligned with upper-tier grantor governments (i.e., controlled by the same party) will receive more grants than those that are unaligned. We use a rich Spanish database, which provides information on grants received by nearly 900 municipalities during the period 1993-2003 from three different upper-tier governments (i.e., Central, Regional and Upper-local). Since three elections were held at each tier during this period, we have enough within-municipality variation in partisan alignment to provide differences-in-differences estimates of the effects of alignment on the amount of grants coming from each source. Moreover, the fact that a municipality may simultaneously receive grants from aligned and unaligned grantors allows us to use a triple-differences estimator, which consists of estimating the effects of changing alignment status on the change in grants coming from the aligned grantors relative to the change in grants coming from the unaligned ones. The results suggest that partisan alignment has a sizeable positive effect on the amount of grants received by municipalities.
|Date of creation:||2006|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +49 (89) 9224-0
Fax: +49 (89) 985369
Web page: http://www.cesifo.de
More information through EDIRC
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.:
- 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.
- Assar Lindbeck & Jörgen Weibull, 1987. "Balanced-budget redistribution as the outcome of political competition," Public Choice, Springer, vol. 52(3), pages 273-297, January.
- David E. Wildasin, 2004.
"The Institutions of Federalism: Toward an Analytical Framework,"
- Wildasin, David E., 2004. "The Institutions of Federalism: Toward an Analytical Framework," National Tax Journal, National Tax Association, vol. 57(2), pages 247-72, June.
- Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004.
"How Much Should We Trust Differences-in-Differences Estimates?,"
The Quarterly Journal of Economics,
MIT Press, vol. 119(1), pages 249-275, February.
- Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2002. "How Much Should We Trust Differences-in-Differences Estimates?," NBER Working Papers 8841, National Bureau of Economic Research, Inc.
- Snyder, James M, 1989. "Election Goals and the Allocation of Campaign Resources," Econometrica, Econometric Society, vol. 57(3), pages 637-60, May.
- Strömberg, David, 2002.
"Optimal Campaigning in Presidential Elections: The Probability of Being Florida,"
CEPR Discussion Papers
3372, C.E.P.R. Discussion Papers.
- Strömberg, David, 2002. "Optimal Campaigning in Presidential Elections: The Probability of Being Florida," Seminar Papers 706, Stockholm University, Institute for International Economic Studies.
- Philip J. Grossman, 1987.
"A Political Theory of Inter-Governmental Grants,"
School of Economics Working Papers
1987-06, University of Adelaide, School of Economics.
- Albert Solé-Ollé, 2006.
"The effects of party competition on budget outcomes: Empirical evidence from local governments in Spain,"
Springer, vol. 126(1), pages 145-176, January.
- Albert Solé Ollé, 2005. "The effects of party competition on budget outcomes: Empirical evidence from local governments in Spain," Working Papers 2005/2, Institut d'Economia de Barcelona (IEB).
- B. Dahlby & L. S. Wilson, 1994. "Fiscal Capacity, Tax Effort, and Optimal Equalization Grants," Canadian Journal of Economics, Canadian Economics Association, vol. 27(3), pages 657-72, August.
- Worthington, Andrew C & Dollery, Brian E, 1998.
" The Political Determination of Intergovernmental Grants in Australia,"
Springer, vol. 94(3-4), pages 299-315, March.
- Andrew Worthington & Brian Dollery, 1998. "The political determination of intergovernmental grants in Australia," Public Choice, Springer, vol. 94(3), pages 299-315, March.
- Dahlberg, M. & Johansson, E., 1999.
"On the Vote Purchasing Behavior of Incumbent Governments,"
1999:24, Uppsala - Working Paper Series.
- Dahlberg, Matz & Johansson, Eva, 1999. "On the Vote Purchasing Behavior of Incumbent Governments," Working Paper Series 1999:24, Uppsala University, Department of Economics.
- 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.
- Case, A., 1997. "Election Goals and Income Redistribution: Recent Evidence from Albania," Papers 177, Princeton, Woodrow Wilson School - Development Studies.
- 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..
- Dixit, Avinash & Londregan, John, 1998. "Fiscal federalism and redistributive politics," Journal of Public Economics, Elsevier, vol. 68(2), pages 153-180, May.
- R J Johnston & I MacAllister & C J Pattie, 1999. "The funding of constituency party general election campaigns in Great Britain," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 17(4), pages 391-409, August.
- Castells, Antoni & Sole-Olle, Albert, 2005. "The regional allocation of infrastructure investment: The role of equity, efficiency and political factors," European Economic Review, Elsevier, vol. 49(5), pages 1165-1205, July.
- Albert SolÃ©-OllÃ© & NÃºria Bosch, 2005. "On the Relationship between Authority Size and the Costs of Providing Local Services: Lessons for the Design of Intergovernmental Transfers in Spain," Public Finance Review, , vol. 33(3), pages 343-384, May.
- Khemani, Stuti, 2003. "Partisan politics and intergovernmental transfers in India," Policy Research Working Paper Series 3016, The World Bank.
When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_1855. 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: (Julio Saavedra)
If references are entirely missing, you can add them using this form.