Arbeitspapier

Electoral accountability and corruption in local governments: evidence from audit reports

Political corruption is a concern of many modern democracies. It weakens democratic institutions, restricts public services, and lowers productivity undermining economic development. Yet despite its importance, our understanding of what determines corruption is limited. This paper uses a novel dataset of political corruption in local governments, constructed from reports of an anti-corruption program in Brazil, to test whether the possibility of re-election affects the level of rents extracted by incumbent politicians. Exploiting variation induced by the existence of a term limit, we find that in municipalities where mayors are in their final term, there is significantly more corruption compared to similar municipalities where mayors can still be re-elected. In particular, the share of resources misappropriated is, on average, 57 percent larger in municipalities with lame-duck mayors. The findings suggest that electoral rules that enhance political accountability play a crucial role in constraining politician's corrupt behavior.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 2843

Klassifikation
Wirtschaft
Thema
Korruption
Kommunalverwaltung
Wiederwahl
Öffentliche Finanzkontrolle
Brasilien

Ereignis
Geistige Schöpfung
(wer)
Ferraz, Claudio
Finan, Frederico
Ereignis
Veröffentlichung
(wer)
Institute for the Study of Labor (IZA)
(wo)
Bonn
(wann)
2007

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Ferraz, Claudio
  • Finan, Frederico
  • Institute for the Study of Labor (IZA)

Entstanden

  • 2007

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