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Government Support in Times of Crisis: Transfers and the Road to Socialism

Author

Listed:
  • Gonzalez, Felipe
  • Prem, Mounu

Abstract

Despite economic crises, incumbents often retain electoral support. We study Chile’s 1970-1973 infant nutrition program under Salvador Allende’s left-wing government and attribute this electoral resilience to the political returns of transfers during crises. The program provided milk to preschoolers, reducing infant mortality and bolstering electoral support despite hyperinflation and economic hardship. Using administrative data, surveys, and variation in crisis severity, we show transfers had greater political returns in areas most affected by the crisis. Survey evidence suggests voters swayed by transfers did not blame the government for the crisis. Our findings highlight how transfers and crisis perceptions sustain electoral popularity.

Suggested Citation

  • Gonzalez, Felipe & Prem, Mounu, 2025. "Government Support in Times of Crisis: Transfers and the Road to Socialism," CEPR Discussion Papers 20059, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:20059
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    File URL: https://cepr.org/publications/DP20059
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    More about this item

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • N35 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Asia including Middle East
    • N46 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Latin America; Caribbean
    • P35 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Public Finance

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