EconPapers    
Economics at your fingertips  
 

The Buck Stops Where? Federalism, Uncertainty, and Investment in the Brazilian Water and Sanitation Sector

Evan Kresch ()

American Economic Journal: Economic Policy, 2020, vol. 12, issue 3, 374-401

Abstract: This paper documents how regulatory uncertainty may undermine public service when different levels of government share a mandate on public service provision. I examine the Brazilian water and sanitation sector, which presents a natural experiment of shared provision between state and municipal companies. Using a difference-in-differences framework, I study a legal reform that clarified the relationship between municipal and state providers and eliminated any takeover threat by state companies. I find that after the reform, municipal companies almost doubled their total system investment, leading to significant increases in system access and decreases in child mortality.

JEL-codes: H77 L95 O13 O18 Q53 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.aeaweb.org/doi/10.1257/pol.20180327 (application/pdf)
https://doi.org/10.3886/E114888V1 (text/html)
https://www.aeaweb.org/doi/10.1257/pol.20180327.appx (application/pdf)
https://www.aeaweb.org/doi/10.1257/pol.20180327.ds (application/zip)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aea:aejpol:v:12:y:2020:i:3:p:374-401

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

DOI: 10.1257/pol.20180327

Access Statistics for this article

American Economic Journal: Economic Policy is currently edited by Matthew Shapiro

More articles in American Economic Journal: Economic Policy from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().

 
Page updated 2021-10-08
Handle: RePEc:aea:aejpol:v:12:y:2020:i:3:p:374-401