Party ideology and policies where corruption is widespread: evidence from local governments

Abstract

This dissertation studies the effect of mayors aligned with a centre left presidential coalition on policy outcomes and corruption. I use Regression Discontinuity Design in Brazilian municipal elections for two mayoral terms, from 2001 to 2008. Theories about politician´s behaviour, include ideological and self-interested motivations, although previous studies analyse it separately. Results indicate that municipalities aligned with the president’s coalition receives more transfers but are not more corrupt and allocate resources differently. Therefore, even in the context of institutional fragility and corruption, politician’s preferences about policies can be relevant in the provision of public services.