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)
Caselli, Francesco, and Guy Michaels.
"Do Oil Windfalls Improve Living Standards? Evidence from Brazil."
American Economic Journal: Applied Economics,
State and Local Government: Health; Education; Welfare; Public Pensions
Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
Economic Development: Human Resources; Human Development; Income Distribution; Migration
Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure