Fiscal decentralization is high on the agenda in policy fora. This paper empirically investigates the underlying causes of fiscal decentralization, based on the predictions of a simple political economy model. We argue that the likeliness that a central government engages in devolution of powers...

Do donor-funded politicians benefit their donors disproportionately? If so, how? This paper examines the impact of electing donor-funded politicians using a novel dataset that uniquely links campaign donors with recipients of public contracts during mayors' incumbency period in Colombia. Using a...

The recent literature on the determinants of populism has highlighted the role of long-term trends of progressive isolation and prolonged economic stagnation in engendering discontent and, in turn, demand for political change. We investigate, instead, the potential of unanticipated local shocks...