National or political cake?
Jean-François Maystadt () and
Muhammad Kabir Salihu
No 100756558, Working Papers from Lancaster University Management School, Economics Department
Analysing the effect of opportunistic fiscal transfers on the electoral fortune of incumbent politicians can be very difficult due to problems of endogeneity. In this paper, we use oil windfalls as an exogenous variation in the political discretion an incumbent government can exert in rule-based transfers. Exploiting within-state variation between 2007 and 2015 in Nigeria, an increase in VAT transfers induced by higher oil windfalls is found to improve the electoral fortune of an incumbent government. Our results question the role of rule-based transfers as an efficient institutional arrangement in resource-abundant countries.
Keywords: Intergovernmental transfers; ruled-based transfers; political manipulation; fiscal federalism; Nigeria (search for similar items in EconPapers)
JEL-codes: H70 H77 P16 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ene, nep-pbe and nep-pol
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://www.lancaster.ac.uk/media/lancaster-univers ... casterWP2015_030.pdf (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:lan:wpaper:100756558
Access Statistics for this paper
More papers in Working Papers from Lancaster University Management School, Economics Department Contact information at EDIRC.
Bibliographic data for series maintained by Giorgio Motta ().