The public purse as a reelection lever: does it work in a corrupt political environment? The case of Honduras

Abstract

Using a sample composed of the 298 Honduran municipalities for the period 2006–2014, we evaluate the impact of budgetary, political and socioeconomic factors on the probability of mayors’ re-election. The findings show that mayors who have initiated greater municipal spending are more likely to be re-elected (a $100 increase in real per capita expenditure increases re-election chances by 19.01%). This finding partially supports both public choice theory and the theory of political budget cycles: voters prefer increased spending. Furthermore, mayors with greater transfers from higher levels of government have more chance of being re-elected. When it comes to political factors, progressive parties and mayors with a majority have more chance of being re-elected.