Chamon, Marcos; Mello, João Manoel Pinho de; Firpo, Sergio - Departamento de Economia, Pontifícia Universidade … - 2008
We exploit a discontinuity in Brazilian municipal election rules to investigate whether political competition has a … competition. At a second stage, we use the discontinuity as a source of exogenous variation to infer causality from political … competition to fiscal policy. Our second stage results suggest that political competition induces more investment and less current …