{"title":"The Impact of Political Fragmentation on the Municipal Spending in Peru","authors":"Alberto Mendoza, Sergio Hinostroza","doi":"10.1093/cesifo/ifad008","DOIUrl":null,"url":null,"abstract":"Abstract This study evaluates the impact of political fragmentation at the municipal level on public expenditure during the period 2007–2018 for the Peruvian case. The results indicate that the effect of political fragmentation within a municipal council on the spending of the provincial municipality could be non-linear. That is, political fragmentation affects negatively the expenditure in a certain tranche and positively in another. In particular, we observe that the incidence occurs only on the execution of capital expenditure. On the other hand, the political fragmentation of the districts within a province seems not to have a significant effect on the execution of expenditure in coordinated areas such as transport, health, and sanitation. (JEL Codes: E62, H54, H72, P16, P35)","PeriodicalId":51748,"journal":{"name":"Cesifo Economic Studies","volume":null,"pages":null},"PeriodicalIF":0.8000,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Cesifo Economic Studies","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1093/cesifo/ifad008","RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"ECONOMICS","Score":null,"Total":0}
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Abstract
Abstract This study evaluates the impact of political fragmentation at the municipal level on public expenditure during the period 2007–2018 for the Peruvian case. The results indicate that the effect of political fragmentation within a municipal council on the spending of the provincial municipality could be non-linear. That is, political fragmentation affects negatively the expenditure in a certain tranche and positively in another. In particular, we observe that the incidence occurs only on the execution of capital expenditure. On the other hand, the political fragmentation of the districts within a province seems not to have a significant effect on the execution of expenditure in coordinated areas such as transport, health, and sanitation. (JEL Codes: E62, H54, H72, P16, P35)
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CESifo Economic Studies publishes provocative, high-quality papers in economics, with a particular focus on policy issues. Papers by leading academics are written for a wide and global audience, including those in government, business, and academia. The journal combines theory and empirical research in a style accessible to economists across all specialisations.
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