Abstract Using Chile as a case study for understanding tactical distribution under extensive controls on expenditure, this paper examines whether political motives affect the allocation of funds from the central… Click to show full abstract
Abstract Using Chile as a case study for understanding tactical distribution under extensive controls on expenditure, this paper examines whether political motives affect the allocation of funds from the central government to localities. Collecting local-level data of two infrastructure funding programs and using the voting gap percentage between the coalition candidate and opposition competitors in a Sharp Regression Discontinuity methodology, we find causal evidence in favor of three hypotheses: (i) a coalition criterion influences the funding allocation to the local level; (ii) an electoral cycle exists in local funding; and (iii) the degree of coalition targeting varies based on a locality's history of coalition alignment. In sum, the central government regards politically aligned mayors as valuable electoral assets, especially in municipalities historically aligned with the coalition.
               
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