Opportunistic and Partisan Election Cycles in Brazil: New Evidence at the Municipal Level

Sergio Naruhiko Sakurai and Naercio Menezes Filho

No 86, Business and Economics Working Papers from Unidade de Negocios e Economia, Insper

Abstract: This article tests the hypothesis of opportunistic and partisan cycle models using a new large data set of Brazilian municipalities over the 1989-2005 period. The results show an increase in total and current expenditures and a decrease in municipal investments, local tax revenues and budget surplus in election years. They also show that partisan ideology exerts a relative influence on the performance of the local public accounts. These results confirm that both opportunistic and partisan cycles have occurred in the management of the budgets of Brazilian municipalities after the end of the military government.

Pages: 27 pages
Date: 2010
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