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Political Colleagues Matter: The Impact of Multiple Office-Holding on Intergovernmental Grants

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  • Brice Fabre

    (PSE - Paris School of Economics, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper brings new evidence on the politics of intergovernmental grants. I focus on multiple office-holding (i.e. whether a local incumbent who has concurrently a seat at an upper layer of government gets more funds from this layer). By using a new panel database on French local governments' accounts, I focus on grants counties allocate to municipalities. For identification, I rely on close electoral races. I find that aligned multiple office-holders (mayors who also have a seat in the majority group of the county council) get on average 28% more grants for their municipality than other municipal incumbents. Evidence on the heterogeneity of this effect suggests that grantors' information on potential recipients, as well as local incumbents' access to upper layers politicians, are key determinants in the allocation of intergovernmental transfers.

Suggested Citation

  • Brice Fabre, 2017. "Political Colleagues Matter: The Impact of Multiple Office-Holding on Intergovernmental Grants," PSE Working Papers halshs-01596149, HAL.
  • Handle: RePEc:hal:psewpa:halshs-01596149
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-01596149
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    References listed on IDEAS

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    1. 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.
    2. Sascha O. Becker & Peter H. Egger & Maximilian von Ehrlich, 2013. "Absorptive Capacity and the Growth and Investment Effects of Regional Transfers: A Regression Discontinuity Design with Heterogeneous Treatment Effects," American Economic Journal: Economic Policy, American Economic Association, vol. 5(4), pages 29-77, November.
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    13. Litschig, Stephan, 2012. "Are rules-based government programs shielded from special-interest politics? Evidence from revenue-sharing transfers in Brazil," Journal of Public Economics, Elsevier, vol. 96(11), pages 1047-1060.
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    15. Marco Migueis, 2013. "The Effect of Political Alignment on Transfers to Portuguese Municipalities," Economics and Politics, Wiley Blackwell, vol. 25(1), pages 110-133, March.
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    Keywords

    Intergovernmental transfers; Multiple Office-Holding; Regression Discontinuity Design; Political Parties;

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