Politically connected governments

• Main Authors: CUNY, Christine, KIM, Jungbae, MEHTA, Mihir N.
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2020
• Subjects: governance; stewardship; political economy; financial reports; congress; political connections; audit; Accounting; Political Science
• Online Access: https://ink.library.smu.edu.sg/soa_research/1964; https://ink.library.smu.edu.sg/context/soa_research/article/2991/viewcontent/Politically_connected_governments_av.pdf
• Institution: Singapore Management University

This paper examines the consequences of powerful political connections for local governments. We find that governments located within the constituencies of, and thus connected to, powerful congressional members reduce their stewardship over public resources. Using plausibly exogenous declines in the...