Political determinants of municipal accounts: Quasi-experimental evidence from Portugal

Mariana Lopes da Fonseca

No 238, University of Göttingen Working Papers in Economics from University of Goettingen, Department of Economics

Abstract: This study investigates the impact of electing a majority in a municipality's legislative body on different items of the local current and capital accounts. Inference is based on a RDD approach and a dataset containing electoral and financial information for a sample of 278 homogeneous municipalities over 32 years. Results provide evidence of a significant causal impact of treatment on the most relevant items of the current and capital revenue and expenditure accounts. In particular, municipalities ruled by a legislative majority raise more revenues through current and capital transfers, but also have higher expenditures with personnel and investment goods.

Keywords: public finance; absolute majority (search for similar items in EconPapers)
Date: 2017, Revised 2017
New Economics Papers: this item is included in nep-pol
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:cegedp:238

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