Intergovernmental Transfers and Elementary Education: Quasi-Experimental Evidence from Brazil

Whether providing additional resources to local communities leads to improved public services and better outcomes more generally, given existing management capacity and incentive and accountability structures, is an unresolved yet important question for public policy. This paper uses a regression-discontinuity design to evaluate the effect of unrestricted fiscal transfers on local spending (including on education), schooling and learning in Brazil. Results show that transfers increase local public spending almost one for one with no evidence of crowding out own revenue or other revenue sources. Extra per capita transfers of 1000 Reais lead to about 0.42 additional years of elementary schooling and student literacy rates increase by about 5.6 percentage points on average. Part of this effect arises through higher teacher-student ratios in municipal elementary school systems. Results also suggest that additional resources have stronger effects in more rural and less developed parts of Brazil.

Oil, foreign aid and FDI flows: The missing link?

A Work Project, presented as part of the requirements for the Award of a Masters Degree in Economics from the NOVA – School of Business and Economics

Report of the Citizens Commission on School Finance /

Cover title.

Public sector efficiency, foreign aid and small island development states

This paper examines the efficiency of public sector expenditures and foreign aid at achieving social sector outcomes in Small Island Developing States (SIDS). Efficiency is estimated using a Stochastic Production Function (SPF) approach and panel data since 1990. A second stage of the analysis examines the determinants of efficiency. Results indicate that the efficiency of aid and public sectors at improving life expectancy has deteriorated during the 1990s but efficiency at improving school enrolments has increased. Higher levels of governance are associated with higher efficiency. There is also evidence to suggest that efficiency is lower in SIDS, as well as in Sub-Saharan Africa.

On the effects of new forms of foreign aid

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Political Parties and Foreign Aid

The influence of partisan politics on public policy is a much debated issue of political science. With respect to foreign policy, often considered as above parties, the question appears even more problematic. This comparison of foreign aid policies in 16 OECD countries develops a structural equation model and uses LISREL analysis to demonstrate that parties do matter, even in international affairs. Social-democratic parties have an effect on a country's level of development assistance. This effect, however, is neither immediate nor direct. First, it appears only in the long run. Second, the relationship between leftist partisan strength and foreign aid works through welfare state institutions and social spending. Our findings indicate how domestic politics shapes foreign conduct. We confirm the empirical relevance of cumulative partisan scores and show how the influence of parties is mediated by other political determinants.