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Government transfers and political support

Manacorda, Marco, Miguel, Edward and Vigorito, Andrea (2011) Government transfers and political support. American Economic Journal: Applied Economics, 3 (3). pp. 1-28. ISSN 1945-7782

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Abstract

This paper estimates the impact of a large anti-poverty cash transfer program, the Uruguayan PANES, on political support for the government that implemented it. Using the discontinuity in program assignment based on a pretreatment eligibility score, we find that beneficiary households are 11 to 13 percentage points more likely to favor the current government relative to the previous government. Political support effects persist after the program ends. Our results are consistent with theories of rational but poorly informed voters who use policy to infer politicians' redistributive preferences or competence, as well as with behavioral economics explanations grounded in reciprocity.

Item Type: Article
Official URL: http://www.aeaweb.org/aej-applied/index.php
Additional Information: © 2011 American Economics Association
Library of Congress subject classification: H Social Sciences > HB Economic Theory
J Political Science > JA Political science (General)
Journal of Economic Literature Classification System: D - Microeconomics > D7 - Analysis of Collective Decision-Making > D72 - Economic Models of Political Processes: Rent-Seeking, Elections, Legislatures, and Voting Behavior
H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H23 - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
H - Public Economics > H5 - National Government Expenditures and Related Policies > H53 - Government Expenditures and Welfare Programs
I - Health, Education, and Welfare > I3 - Welfare and Poverty > I38 - Government Policy; Provision and Effects of Welfare Programs
O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O15 - Human Resources; Human Development; Income Distribution; Migration
Sets: Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Date Deposited: 05 Sep 2011 08:38
URL: http://eprints.lse.ac.uk/38091/

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