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American Economic Journal: Applied Economics: Vol. 5 No. 1 (January 2013)

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Do Oil Windfalls Improve Living Standards? Evidence from Brazil

Article Citation

Caselli, Francesco, and Guy Michaels. 2013. "Do Oil Windfalls Improve Living Standards? Evidence from Brazil." American Economic Journal: Applied Economics, 5(1): 208-38.

DOI: 10.1257/app.5.1.208

Abstract

We use variation in oil output among Brazilian municipalities to investigate the effects of resource windfalls on government behavior. Oil-rich municipalities experience increases in revenues and report corresponding increases in spending on public goods and services. However, survey data and administrative records indicate that social transfers, public good provision, infrastructure, and household income increase less (if at all) than one might expect given the higher reported spending. (JEL H41, H75, I31, O13, O15, O17, O18)

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Authors

Caselli, Francesco (London School of Economics and Political Science)
Michaels, Guy (London School of Economics and Political Science)

JEL Classifications

H41: Public Goods
H75: State and Local Government: Health; Education; Welfare; Public Pensions
I31: General Welfare
O13: Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
O15: Economic Development: Human Resources; Human Development; Income Distribution; Migration
O17: Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
O18: Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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