SCHADY, Norbert R
The political economy of expenditures by the peruvian social fund (FONCODES),1991-95 - 2000
The Peruvian Social Fund (FONCODES) was created by Presidente Alberto Fujimori in 1991 whith the stated objectives of generating employment, allviating poverty, and improving access to social services. This article uses province-level data on monthly expenditures, socioeconomic indicator, and electoral outcomes to analyze political influences on the timing and geographic distribution of FONCODES expenditures between 1991 and 1995. I reach three main conclusions. Firts, these expenditures increased significantly before natinal elections. Second, FONCODES projects were directed at provinces in wich the marginal political effect of expenditures was likely to be largest. Third, these projects favored the poorest provinces, which suggests that the program aso had a redistributive function. The results are robust to a large number of specifications and controls. The Peruvian data suport predictinos made in the literature on political business cycles as well as the literature on olitical influences on the allocation of discretionary funds
The political economy of expenditures by the peruvian social fund (FONCODES),1991-95 - 2000
The Peruvian Social Fund (FONCODES) was created by Presidente Alberto Fujimori in 1991 whith the stated objectives of generating employment, allviating poverty, and improving access to social services. This article uses province-level data on monthly expenditures, socioeconomic indicator, and electoral outcomes to analyze political influences on the timing and geographic distribution of FONCODES expenditures between 1991 and 1995. I reach three main conclusions. Firts, these expenditures increased significantly before natinal elections. Second, FONCODES projects were directed at provinces in wich the marginal political effect of expenditures was likely to be largest. Third, these projects favored the poorest provinces, which suggests that the program aso had a redistributive function. The results are robust to a large number of specifications and controls. The Peruvian data suport predictinos made in the literature on political business cycles as well as the literature on olitical influences on the allocation of discretionary funds
