The Impact of Intergovernmental Transfers on Education Outcomes and Poverty Reduction

Stephan Litschig and Kevin M. Morrison

American Economic Journal: Applied Economics, 2013, vol. 5, issue 4, 206-40

Abstract: This paper provides regression discontinuity evidence on development impacts of intergovernmental transfers. Extra transfers in Brazil increased local government spending per capita by about 20 percent over a 4 year period with no evidence of crowding out own revenue or other revenue sources. Schooling per capita increased by about 7 percent and literacy rates by about 4 percentage points. In line with the effect on human capital, the poverty rate was reduced by about 4 percentage points. Somewhat noisier results also suggest that the reelection probability of local incumbent parties in the 1988 elections improved by about 10 percentage points.

JEL-codes: H72 H75 I21 I28 I32 I38 O15 (search for similar items in EconPapers)
Date: 2013
Note: DOI: 10.1257/app.5.4.206
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Citations: View citations in EconPapers (78)

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