Where do politicians send pork? Evidence from central government transfers to French municipalities

Brice Fabre () and Marc Sangnier
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Brice Fabre: Paris School of Economics (PSE) and Institut des Politiques Publiques (IPP)

No 2202, DeFiPP Working Papers from University of Namur, Development Finance and Public Policies

Abstract: This paper uses French data to simultaneously estimate the impact of two types of connections on government subsidies allocated to municipalities. We distinguish between municipalities in which ministers held office before being appointed to the government, and those where they lived as children. Exploiting ministers’ entries into and exits from the government, we show that cities where a minister was mayor receive 30% more investment subsidies when the politician they are linked to enters into the government, and a similar size decrease when the minister leaves. We do not find these outcomes for cities that ministers lived in as children.

Pages: 47 pages
Date: 2022-02
New Economics Papers: this item is included in nep-ban, nep-eur and nep-ure
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https://defipp.unamur.be/wp/defipp_wp_2022_2.pdf First version, 2022 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:nam:defipp:2202

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