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Project Citation: 

Brollo, Fernanda, Nannicini, Tommaso, Perotti, Roberto, and Tabellini, Guido. Replication data for: The Political Resource Curse. Nashville, TN: American Economic Association [publisher], 2013. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-11. https://doi.org/10.3886/E112657V1

Project Description

Summary:  View help for Summary This paper studies the effect of additional government revenues on political corruption and on the quality of politicians, both with theory and data. The theory is based on a political agency model with career concerns and endogenous entry of candidates. The data refer to Brazil, where federal transfers to municipal governments change exogenously at given population thresholds, allowing us to implement a regression discontinuity design. The empirical evidence shows that larger transfers increase observed corruption and reduce the average education of candidates for mayor. These and other more specific empirical results are in line with the predictions of the theory.

Scope of Project

JEL Classification:  View help for JEL Classification
      D72 Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
      D73 Bureaucracy; Administrative Processes in Public Organizations; Corruption
      H77 Intergovernmental Relations; Federalism; Secession
      O17 Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
      O18 Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure


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