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.

KEYWORDS:

• Re-Election
• local governments
• municipal expenditure
• taxes
• ideology

Disclosure statement

No potential conflict of interest was reported by the authors.

Correction Statement

This article has been republished with minor changes. These changes do not impact the academic content of the article.

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Notes on contributors

Francisco Bastida

Lorenzo Estrada is a professor in the Business Education Department of the Francisco Morazán National Pedagogical University (UPNFM), Honduras, where he teaches financial accounting, cost accounting finance management. His current research focuses on the impact of transparency government financial reporting on citizens’ trust. He has published in journals including Administration and Society.

Francisco Bastida was until recently Professor of Financial Economics and Accounting at the University of Murcia, Spain, and is now a professor at Prince Sultan University, Saudi Arabia. His teaching focuses on accounting information systems and his current research looks from an international perspective at the impact of transparency in government financial reporting on public finances. He has published widely in international journals including Applied Economics, Public Administration, Public Administration Review, International Public Management and the American Review of Public Administration.