When does the winner take more? The role of political alignment in transfers to Romanian municipalities

Georgiana Puscas
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Georgiana Puscas: University of Warwick

Warwick-Monash Economics Student Papers from Warwick Monash Economics Student Papers

Abstract: This paper explores whether the political alignment between mayors and the central government brings additional financial benefits to municipalities in Romania, using a novel dataset over 2012-2018. Analysing close municipal elections, I apply a regression discontinuity design to identify the effect of political alignment on several categories of transfers. I find that politically aligned municipalities receive per capita about 19% more equalisation transfers, 46% more subventions and 30% more transfers for roads. The results indicate that transfers for decentralised costs at municipality level are nondiscretionary

Keywords: transfers allocation; political alignment; electoral competition JEL Classification: D72; H77; H81; P16; C21 (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-cdm, nep-pol and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:wrk:wrkesp:05

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