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Against the tide

How changes in political alignment affect grant allocation to municipalities in Hungary

Bibliographic Data

ID10931950
AuthorsTamás Vasvári (0000-0001-9328-2198, University of Pecs, corresponding author), Dóra Longauer (0000-0003-1481-311X, University of Pecs)
Year2024
Volume198
Issue3-4
Pages467-492
Publication date2024-03-01
Open AccessYes
TypeARTICLE
VenuePublic Choice (JOURNAL)
Journal identifiersISSN: 0048-5829 • E-ISSN: 1573-7101
PublisherSpringer Science and Business Media LLC (PUBLISHER)
DOI10.1007/s11127-023-01138-w
OpenAlexW4391514778
LanguageEN
Citations received4
References cited28

The 2019 local election in Hungary accelerated the trend of centralization, marked by a simultaneous reduction in available local funds and an increase in discretionary transfers to local governments. This paper, utilizing a dataset encompassing all over 3000 municipalities from 2015 to 2020, employs fixed-effect estimations and a regression discontinuity design to explore how election outcomes influenced central decisions on intergovernmental transfers. Generally, larger municipalities are more susceptible to political influence, particularly in the allocation of discretionary grants, whereas smaller settlements appear less affected by political shifts. Changes in political alignment triggered a rewarding policy for municipalities that remained or converted to aligned status, resulting in an additional 86.4% and 65.2% of discretionary funds, respectively, relative to those converting to or remaining unaligned. Our research establishes that political influence in intergovernmental transfers has intensified since 2019, offering valuable insights for the upcoming 2024 election

Affect (linguistics · Economics · Political science · Politics · Public finance · Sociology · Law · Local Government Finance and Decentralization · Political Systems and Governance · Public Administration · Regional Development and Policy

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Citations per year2
Citation span2024 - 2026 (3)
Highly citedNo

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