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Sending the pork home: birth town bias in transfers to Italian municipalities

Author

Listed:
  • Felipe Carozzi

    () (CEMFI)

  • Luca Repetto

    () (CEMFI)

Abstract

We analyze the distribution of central transfers to municipal governments for the period between the 1993 and the 2005 electoral reforms using a panel of Italian municipalities. We find evidence that being the birth town of a Member of Parliament results in an increase in yearly transfers per capita paid to a municipal administration of roughly 2 percent. Controlling for town fixed effects and concentrating on politicians who are member of economic commissions we confirm that the effect is driven by an active behavior of the politician and not by unobserved town-level characteristics. Using a feature of single member district systems we are able to conclude that these actions are not driven by the desire of being re-elected in Parliament, the standard explanation for pork-barrel spending in the literature. Instead, our results suggest that those extra transfers may be a way for a politician to prepare the ground for a post-congressional career in local government.

Suggested Citation

  • Felipe Carozzi & Luca Repetto, 2013. "Sending the pork home: birth town bias in transfers to Italian municipalities," Working Papers 2013/35, Institut d'Economia de Barcelona (IEB).
  • Handle: RePEc:ieb:wpaper:2013/6/doc2013-35
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    Cited by:

    1. Manacorda, Marco & Gagliarducci, Stefano, 2016. "Politics in the family: Nepotism and the hiring decisionsof Italian firms," LSE Research Online Documents on Economics 66440, London School of Economics and Political Science, LSE Library.
    2. Quoc-Anh Do & Kieu-Trang Nguyen & Anh N. Tran, 2016. "One Mandarin Benefits the Whole Clan: Hometown Favoritism in an Authoritarian Regime," Sciences Po publications info:hdl:2441/2q4cjijvsm8, Sciences Po.
    3. Fiva, Jon H. & Halse, Askill H., 2016. "Local favoritism in at-large proportional representation systems," Journal of Public Economics, Elsevier, vol. 143(C), pages 15-26.
    4. Do, Quoc-Anh & Nguyen, Kieu-Trang & Tran, Anh N., 2017. "One Mandarin benefits the whole clan: hometown favoritism in an authoritarian regime," LSE Research Online Documents on Economics 85928, London School of Economics and Political Science, LSE Library.
    5. Muhammad Haseeb & Kate Vyborny, 2016. "Imposing institutions: Evidence from cash transfer reform in Pakistan," CSAE Working Paper Series 2016-36, Centre for the Study of African Economies, University of Oxford.
    6. Jennes, Geert & Persyn, Damiaan, 2015. "The effect of political representation on the geographic distribution of income: Evidence using Belgian data," European Journal of Political Economy, Elsevier, vol. 37(C), pages 178-194.
    7. Quoc-Anh Do & Kieu-Trang Nguyen & Anh N. Tran, 2013. "One Mandarin Benefits the Whole Clan: Hometown Favoritism in an Authoritarian Regime," Sciences Po publications info:hdl:2441/2ck6as9uec9, Sciences Po.
    8. Levoshko, Tamila, 2017. ""Pork-Barrel"-Politik und das regionale Wirtschaftswachstum. Empirische Evidenz für die Ukraine und Polen," Working Papers 0642, University of Heidelberg, Department of Economics.
    9. Thushyanthan Baskaran & Mariana Lopes da Fonseca, 2017. "Appointed Public Officials and Local Favoritism: Evidence from the German States," CESifo Working Paper Series 6800, CESifo Group Munich.
    10. Nastassia Leszczynska, 2017. "Double Hat Politicians: Political Moonlighting in Wallonia," Working Papers ECARES ECARES 2017-43, ULB -- Universite Libre de Bruxelles.
    11. Quoc-Anh Do & Kieu-Trang Nguyen & Anh N. Tran, 2017. "One Mandarin Benefits the Whole Clan: Hometown Favoritism in an Authoritarian Regime," Sciences Po publications info:hdl:2441/sj22pruud8a, Sciences Po.
    12. Kauder, Björn & Potrafke, Niklas & Reischmann, Markus, 2016. "Do politicians reward core supporters? Evidence from a discretionary grant program," Munich Reprints in Economics 43486, University of Munich, Department of Economics.
    13. Brice Fabre & Marc Sangnier, 2017. "What Motivates French Pork: Political Career Concerns or Private Connections?," Working Papers halshs-01480532, HAL.
    14. Kauder, Björn & Björn, Kauder & Niklas, Potrafke & Markus, Reischmann, 2016. "Do politicians gratify core supporters? Evidence from a discretionary grant program," Annual Conference 2016 (Augsburg): Demographic Change 145509, Verein für Socialpolitik / German Economic Association.
    15. Gerrit J. Gonschorek & Günther G. Schulze & Bambang Suharnoko Sjahrir, 2018. "To the ones in need or the ones you need? The Political Economy of Central Discretionary Grants − Empirical Evidence from Indonesia," Discussion Paper Series 36, Department of International Economic Policy, University of Freiburg, revised Jan 2018.
    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. repec:eee:regeco:v:64:y:2017:i:c:p:1-11 is not listed on IDEAS

    More about this item

    Keywords

    Redistributive policies; pork-barrel policies; political economy;

    JEL classification:

    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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