Fiscal policy and reelection in Brazilian municipalities
Código: WPE – 124
Sergio Naruhiko Sakurai
Naercio Aquino Menezes-Filho
This paper uses a new panel of more than two thousand Brazilian municipalities over thirteen years to analyze the influence of public expenditures on the probability of mayors’ reelection. We examine Brazilian municipal elections from 1988 to 2000 using a logit fixedeffects model. The results suggest that higher public expenditures executed during the whole political term increase the probability of reelection of Brazilian mayors. In particular, higher capital spending over the years preceding elections and current expenditures in election years are beneficial to Brazilian incumbent mayors.