We document how manipulation of a targeting system for social welfare
programs evolves over time. First, there was strategic behavior of some local politicians in the timing of the household interviews around local elections. Then, there was corrupt behavior with the sudden emergence of a sharp discontinuity in the score density, exactly at the eligibility threshold, which coincided with the release of the score algorithm to local officials. The discontinuity at the
threshold is larger where mayoral elections are more competitive. While cultural forces are surely relevant for corruption, our results also highlight the importance of information and incentives. (JEL D72, I32, I38, O15, O17).
"Manipulation of Social Program Eligibility."
American Economic Journal: Economic Policy,
Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
Measurement and Analysis of Poverty
Welfare and Poverty: Government Programs; Provision and Effects of Welfare Programs
Economic Development: Human Resources; Human Development; Income Distribution; Migration
Formal and Informal Sectors; Shadow Economy; Institutional Arrangements