The Relationship between Federal Budget Amendments and Local Electoral Power

30 Pages Posted: 1 Feb 2014

See all articles by Sergio Firpo

Sergio Firpo

Insper

Vladimir P. Ponczek

Getulio Vargas Foundation (FGV) - Sao Paulo School of Economics

Viviane Sanfelice

University of Rochester

Abstract

The objectives of this paper are twofold. First, we investigate whether politicians use resources from the federal budget as a strategy to maintain and expand their political capital. Second, we examine whether such a strategy is rewarded by voters who elect politicians who assist their municipalities through federal expenditures. The main contribution of this study is its illustration of how the use of fiscal policy affects the local political power of legislators in Brazil.We focus on the geographical distribution of votes received by politicians within their electoral districts instead of only examining the final outcomes of reelection efforts. Our findings indicate that politicians tend to favor municipalities that were important to their elections and that voters support candidates who have brought resources to their localities. However, given that Brazil uses a party-open-list proportional representation system for congressional elections, influencing the behavior of voters through amendments is not sufficient to increase a candidate's chances of winning reelection.

Keywords: voter's preference, pork barrel, politician's strategies, electoral power

JEL Classification: H7

Suggested Citation

Firpo, Sergio and Ponczek, Vladimir P. and Sanfelice, Viviane, The Relationship between Federal Budget Amendments and Local Electoral Power. IZA Discussion Paper No. 7918. Available at SSRN: https://ssrn.com/abstract=2389286

Sergio Firpo (Contact Author)

Insper ( email )

R Quata 300
Sao Paulo, 04542-030
Brazil

HOME PAGE: http://https://sites.google.com/site/sergiopfirpo/

Vladimir P. Ponczek

Getulio Vargas Foundation (FGV) - Sao Paulo School of Economics ( email )

Viviane Sanfelice

University of Rochester ( email )

300 Crittenden Blvd.
Rochester, NY 14627
United States

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