Bulletin n. 2-3/2013
February 2014
CONTENTS
  • Section A) The theory and practise of the federal states and multi-level systems of government
  • Section B) Global governance and international organizations
  • Section C) Regional integration processes
  • Section D) Federalism as a political idea
  • Timmons Jeffrey F., Broid Daniel
    The Political Economy of Municipal Transfers: Evidence from Mexico
    in Publius: The Journal of Federalism , vol. 43, n. 4, Fall ,  2013 ,  551-579
    How do fiscal institutions, partisanship, and governance affect federal transfers to municipalities? We address this question using a novel research design and data set for Mexico. We compare the state-level obligations for federal transfers to municipalities with the distribution of these funds as reported by municipalities. This strategy allows us to know whether state-level formulas are binding, whether there are partisan skews in the formula, and how and why governors reallocate funds. We find that state-level fiscal institutions are quite binding; even so, deviations from the formula total approximately US$300–500 million annually. Whereas Partido Revolucionario Institucional governors appear to reallocate to municipalities when they are governed by their co-partisans, Partido Acción Nacional and Partido de la Revolución Democrática governors appear to reallocate funds to municipalities for equity, stabilization, and disasters (with no detectable partisan bias).
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