The Impact of Intergovernmental Transfers on Education Outcomes and Poverty Reduction
This paper provides regression discontinuity evidence on development impacts of intergovernmental transfers. Extra transfers in Brazil increased local government spending per capita by about 20 percent over a 4 year period with no evidence of crowding out own revenue or other revenue sources. School...
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Published in | American economic journal. Applied economics Vol. 5; no. 4; pp. 206 - 240 |
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Main Authors | , |
Format | Journal Article |
Language | English |
Published |
American Economic Association
01.10.2013
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Subjects | |
Online Access | Get full text |
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Summary: | This paper provides regression discontinuity evidence on development impacts of intergovernmental transfers. Extra transfers in Brazil increased local government spending per capita by about 20 percent over a 4 year period with no evidence of crowding out own revenue or other revenue sources. Schooling per capita increased by about 7 percent and literacy rates by about 4 percentage points. In line with the effect on human capital the poverty rate was reduced by about 4 percentage points. Somewhat noisier results also suggest that the reelection probability of local incumbent parties in the 1988 elections improved by about 10 percentage points. |
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ISSN: | 1945-7782 1945-7790 |
DOI: | 10.1257/app.5.4.206 |