American Economic Journal:
Applied Economics
ISSN 1945-7782 (Print) | ISSN 1945-7790 (Online)
The Impact of Intergovernmental Transfers on Education Outcomes and Poverty Reduction
American Economic Journal: Applied Economics
vol. 5,
no. 4, October 2013
(pp. 206–40)
Abstract
This paper provides regression discontinuity evidence on development impacts of intergovernmental transfers. Extra transfers in Brazil increased local government spending per capita by about 20 percent over a 4 year period with no evidence of crowding out own revenue or other revenue sources. Schooling per capita increased by about 7 percent and literacy rates by about 4 percentage points. In line with the effect on human capital, the poverty rate was reduced by about 4 percentage points. Somewhat noisier results also suggest that the reelection probability of local incumbent parties in the 1988 elections improved by about 10 percentage points.Citation
Litschig, Stephan, and Kevin M. Morrison. 2013. "The Impact of Intergovernmental Transfers on Education Outcomes and Poverty Reduction." American Economic Journal: Applied Economics, 5 (4): 206–40. DOI: 10.1257/app.5.4.206Additional Materials
JEL Classification
- H72 State and Local Budget and Expenditures
- H75 State and Local Government: Health; Education; Welfare; Public Pensions
- I21 Analysis of Education
- I28 Education: Government Policy
- I32 Measurement and Analysis of Poverty
- I38 Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs
- O15 Economic Development: Human Resources; Human Development; Income Distribution; Migration
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