12th Online Seminar in Finance: Linda Veiga, University of Minho
The Institute of Finance at PUEB is pleased to announce the 12th Online Seminar in Finance.
Speaker: Linda Veiga, University of Minho
Title: Mayoral Term Limits and the Distribution of Intergovernmental Grants
Abstract: This paper examines how binding term limits shape the allocation of intergovernmental grants. Taking advantage of a quasi-natural experimental setting, recent difference-in-differences methodologies that account for heterogeneous treatment effects and variations in treatment timing are used to investigate the effects of mayoral term limits on the allocation of grants to Portuguese mainland municipalities from 1998 to 2021. Our findings indicate that municipalities governed by term-limited mayors tend to receive smaller amounts of conditional (non-formula-determined) grants in or near local election years than municipalities with mayors eligible for reelection. The strongest effects are found for capital grants, especially those funded by the European Union. The smaller amounts of grants obtained seem to result from lower effort by term-limited mayors rather than from central government discrimination. Our results align with previous research indicating that term limits may increase moral hazard, but may also exert a disciplining effect on fiscal policy by mitigating political budget cycles on capital expenditures.
Date: January 12th, 2024, 15:00 (Warsaw time)
Speaker’s bios: Prof. Linda Veiga holds a Ph.D. in Economics from the University of South Carolina (USA) and teaches and researches in the areas of public economics and political economy. She has published widely and coordinated several externally funded research projects. She was a member of the Board of the European Public Choice Society. She has been Pro-Rector of UMinho, Vice-President of EEG/UMinho and Director of the Center for Research in Economics and Management (NIPE), the Department of Economics and the Ph.D. and Master’s programs in Economics. She also has experience as a consultant to the United Nations, the OECD, the North Regional Coordination and Development Commission, the Portuguese Court of Audit and the Directorate General of Local Governments.
To register, please click here: https://forms.gle/92HvKbpJUjAgKftt6*
Registration deadline: January 10th, 2024, 20:00 (Warsaw time). The invitation to the Teams webinar will be sent on January 11th, 2024.
*If the link does not work, please paste it into your browser.