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IEB17-09_Carozzi.pdf (2.53 MB)

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Working paper

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2017

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cc-by-nc-nd, (c) Carozzi et al., 2017
Please use this identifier to cite or link to this item: https://hdl.handle.net/2445/117523

Distributive politics inside the city? The political economy of Spain’s plan E

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Abstract

We study distributive politics inside cities by analysing how local governments allocate investment projects to voters across neighbourhoods. In particular, we ask whether politicians use investment to target their own supporters. To this aim, we use detailed geo-located investment data from Plan E, a large fiscal stimulus program carried out in Spain in 2009-2011. Our empirical strategy is based on a closeelections regression-discontinuity design. In contrast to previous studies – which use aggregate data at the district or municipal level – we exploit spatial variation in both investment and voter support within municipalities and find no evidence of suportar targeting. Complementary results indicate that voters may be responding to investment by increasing turnout. Overall, our findings suggest that distributive politics only play a minor role inside the city.

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Política econòmica, Administració local, Distribució (Teoria econòmica)

Subject (English)

Economic policy, Local government, Distribution (Economic theory)

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IEB (Institut d’Economia de Barcelona) – Working Papers

Citation

CAROZZI, Felipe and REPETTO, Luca. Distributive politics inside the city? The political economy of Spain’s plan E. IEB Working Paper 2017/09. [consulted: 19 of August of 2026]. Available at: https://hdl.handle.net/2445/117523

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