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National electoral cycles in transfers to subnational jurisdictions. Evidence from Argentina

Author

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  • Cecilia Rumi

    (Universidad Nacional de La Plata)

Abstract

The political budget cycle literature studies the periodic fluctuations in governments’ fiscal policies induced by the cyclicality of electoral processes, but the effects of elections on the distribution of federal resources among subnational governments has not been thoroughly investigated. This paper inquires into the presence of electoral cycles in federal government transfers, presenting evidence on how the Argentine national government has allocated, since the reestablishment of democracy in 1983, two different types of discretional transfers — cash and in-kind — among the subnational governments. There is an electoral manipulation of total transfers that favors subnational governments that are politically affiliated to the national government; cash transfers show that same pattern. However, inkind transfers, which are more traceable to the national government than cash transfers, increase in non-affiliated subnational jurisdictions during election years.

Suggested Citation

  • Cecilia Rumi, 2014. "National electoral cycles in transfers to subnational jurisdictions. Evidence from Argentina," Journal of Applied Economics, Universidad del CEMA, vol. 17, pages 161-178, May.
    • Handle: RePEc:cem:jaecon:v:17:y:2014:n:1:p:161-178
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    File URL: https://ucema.edu.ar/publicaciones/download/volume17/rumi.pdf
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    Citations

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    Cited by:

    1. Eric Dubois, 2016. "Political business cycles 40 years after Nordhaus," Public Choice, Springer, vol. 166(1), pages 235-259, January.
    2. Pablo Garofalo & Daniel Lema & Jorge M. Streb, 2020. "Political budget cycles and voting within a federal country: The influence of political alignment," Economics and Politics, Wiley Blackwell, vol. 32(2), pages 305-334, July.
    3. Guglielmo Barone & Guido de Blasio & Alessio D'Ignazio & Andrea Salvati, 2017. "Incentives to local public service provision: an evaluation of Italy�s Obiettivi di Servizio," Questioni di Economia e Finanza (Occasional Papers) 388, Bank of Italy, Economic Research and International Relations Area.
    4. Pablo Garofalo & Daniel Lema & Jorge M. Streb, 2016. "Party alignment, political budget cycles and vote within a federal country," CEMA Working Papers: Serie Documentos de Trabajo. 601, Universidad del CEMA, revised May 2017.
    5. Klein, Fabio Alvim & Sakurai, Sergio Naruhiko, 2015. "Term limits and political budget cycles at the local level: evidence from a young democracy," European Journal of Political Economy, Elsevier, vol. 37(C), pages 21-36.
    6. Daniel Lema & Jorge M. Streb, 2013. "Party alignment and political budget cycles: the Argentine provinces," CEMA Working Papers: Serie Documentos de Trabajo. 520, Universidad del CEMA.
    7. Fabio Alvim Klein & Sergio Naruhiko Sakurai, 2016. "Term Limits And Political Budget Cycles At The Local Level: Evidence From A Young Democracy," Anais do XLII Encontro Nacional de Economia [Proceedings of the 42nd Brazilian Economics Meeting] 052, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    8. Jorge L D. Ferreira & Alexandre F. Alves & Emilie Caldeira, 2021. "Grants for Whom and Why? The Politics of Allocation of Transfers in Brazil," The Developing Economies, Institute of Developing Economies, vol. 59(1), pages 39-63, March.
    9. Eric Dubois, 2016. "Political Business Cycles 40 Years after Nordhaus," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01291401, HAL.
    10. Alessio Mitra & Athanasios Chymis, 2022. "Federalism, but how? The impact of vertical fiscal imbalance on economic growth. Evidence from Belgium," Economics and Politics, Wiley Blackwell, vol. 34(2), pages 322-350, July.
    11. Eric Dubois, 2016. "Political Business Cycles 40 Years after Nordhaus," Post-Print hal-01291401, HAL.

    More about this item

    Keywords

    electoral cycles; subnational governments;

    JEL classification:

    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General

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