Does partisan alignment affect the electoral reward of intergovernmental transfers?

Albert Solé-Ollé and Pilar Sorribas-Navarro ()

No 206, Working Papers in Economics from Universitat de Barcelona. Espai de Recerca en Economia

Abstract: In this paper we test the hypothesis that intergovernmental grants allocated to co-partisans buy more political support than grants allocated to local governments controlled by opposition parties. We use a rich Spanish database containing information about the grants received by 617 municipalities during the period 1993-2003 from two different upper-tier governments (Regional and Upper-local), as well as data of municipal voting behaviour at three electoral contests held at the different layers of government during this period. Therefore, we are able to estimate two different vote equations, analysing the effects of grants given to aligned and unaligned municipalities on the vote share of the incumbent party/parties at the regional and local elections. We account for the endogeneity of grants by instrumenting them with the average amount of grants distributed by upper-layer governments. The results suggest that grants given to co-partisans buy some political support, but that grants given to the opposition do not bring any votes, suggesting that the grantee reaps as much political credit from intergovernmental grants as the grantor.

JEL-codes: C72 D72 (search for similar items in EconPapers)
Pages: 0 pages
Date: 2008
New Economics Papers: this item is included in nep-cdm, nep-geo and nep-pol
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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Related works:
Working Paper: Does Partisan Alignment Affect the Electoral Reward of Intergovernmental Transfers? (2008)
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