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Local Electoral Rewards from Centralized Social Programs: Are Mayors Getting the Credit?

Author

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  • Rodríguez Chamussy, Lourdes
Abstract
This paper uses variation in the timing of the Mexican antipoverty program's introduction across municipalities to identify its impact on the share of votes for the local incumbent party. Evidence is found that voters reward the mayor's party for the central benefit to their constituencies, accounting on average for 2.8 additional percentage points in the share of votes for the mayor's party. The analysis of party alignment shows that this electoral effect cannot be explained as a reward for the federal incumbent in local elections. Alternative explanations are examined, and it is shown that the effect for the local incumbent is heterogeneous for the different political parties and varies with characteristics of the municipalities, being stronger where the mayor faced more contestable elections, in capital cities of the states and in predominantly urban, more educated and relatively wealthier municipalities. Findings are consistent with the hypothesis that politicians have incentives to engage in signaling strategies to link themselves to the transfer program.

Suggested Citation

  • Rodríguez Chamussy, Lourdes, 2015. "Local Electoral Rewards from Centralized Social Programs: Are Mayors Getting the Credit?," IDB Publications (Working Papers) 6802, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:6802
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    Citations

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    Cited by:

    1. Martinez, Leonardo, 2009. "A theory of political cycles," Journal of Economic Theory, Elsevier, vol. 144(3), pages 1166-1186, May.
    2. Vergne, Clémence, 2009. "Democracy, elections and allocation of public expenditures in developing countries," European Journal of Political Economy, Elsevier, vol. 25(1), pages 63-77, March.
    3. Nakaguma, Marcos Yamada & Bender, Siegfried, 2010. "Ciclos Políticos e Resultados Eleitorais: Um Estudo sobre o Comportamento do Eleitor Brasileiro," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 64(1), March.
    4. Antoine CAZALS & Pierre MANDON, 2016. "Political Budget Cycles: Manipulation from Leaders or Manipulation from Researchers? Evidence from a Meta-Regression Analysis," Working Papers 201609, CERDI.
    5. Daniel Lema & Jorge M. Streb, 2013. "Ciclos electorales en política fiscal," CEMA Working Papers: Serie Documentos de Trabajo. 514, Universidad del CEMA.
    6. Balaguer-Coll, Maria Teresa & Brun-Martos, María Isabel & Forte, Anabel & Tortosa-Ausina, Emili, 2015. "Local governments' re-election and its determinants: New evidence based on a Bayesian approach," European Journal of Political Economy, Elsevier, vol. 39(C), pages 94-108.
    7. Jula, Dorin, 2008. "Economic Impact of Political Cycles – The Relevance of European experinces for Romania," Working Papers of Institute for Economic Forecasting 081101, Institute for Economic Forecasting.
    8. Shi, Min & Svensson, Jakob, 2006. "Political budget cycles: Do they differ across countries and why?," Journal of Public Economics, Elsevier, vol. 90(8-9), pages 1367-1389, September.
    9. Antoine Cazals & Pierre Mandon, 2015. "Political Budget Cycles: Manipulation of Leaders or Bias from Research? A Meta-Regression Analysis," Working Papers halshs-01238883, HAL.
    10. Antoine Cazals & Pierre Mandon, 2016. "Political Budget Cycles: Manipulation from Leaders or Manipulation from Researchers? Evidence from a Meta-Regression Analysis," Working Papers halshs-01320586, HAL.
    11. Jean-Francois Maystadt & Muhammad Kabir Salihu, 2015. "National or political cake?," Working Papers 100756558, Lancaster University Management School, Economics Department.
    12. Balaguer-Coll, María Teresa & Brun-Martos, María Isabel, 2013. "El efecto del gasto público sobre las posibilidades de reelección de los gobiernos locales," Revista de Contabilidad - Spanish Accounting Review, Elsevier, vol. 16(1), pages 74-80.
    13. Diego Aboal & Fernando Lorenzo & Andrés Rius, 2000. "Is the exchange rate politically manipulated around elections? The evidence from Uruguay," Documentos de Trabajo (working papers) 1800, Department of Economics - dECON.

    More about this item

    Keywords

    Municipal elections; Government transfers; Voting;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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