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DOES POLITICAL ALIGNMENT INFLUENCE PUBLIC INVESTMENT? A REGRESSION DISCONTINUITY APPROACH IN COLOMBIA

Iriondo Peña, Eduardo LU (2025) NEKN01 20251
Department of Economics
Abstract
This paper investigates whether political alignment between local mayors and departmental governors influences public investment decisions, specifically within the Colombian context. Using a regression discontinuity design based on close electoral outcomes, the study examines the allocation and efficiency of educational investments and related public expenditures across municipalities. Findings indicate that politically aligned municipalities receive significantly higher educational investments, ranging from approximately 65.7% to 125% more compared to non-aligned municipalities. However, aligned municipalities exhibit poorer educational outcomes despite increased financial inputs, with standardized test scores declining by 0.234 to 0.403... (More)
This paper investigates whether political alignment between local mayors and departmental governors influences public investment decisions, specifically within the Colombian context. Using a regression discontinuity design based on close electoral outcomes, the study examines the allocation and efficiency of educational investments and related public expenditures across municipalities. Findings indicate that politically aligned municipalities receive significantly higher educational investments, ranging from approximately 65.7% to 125% more compared to non-aligned municipalities. However, aligned municipalities exhibit poorer educational outcomes despite increased financial inputs, with standardized test scores declining by 0.234 to 0.403 standard deviations. These paradoxical results suggest that political alignment might foster inefficiencies or clientelistic practices in resource allocation, undermining the effectiveness of public spending. (Less)
Popular Abstract
This paper investigates whether political alignment between local mayors and departmental governors influences public investment decisions, specifically within the Colombian context. Using a regression discontinuity design based on close electoral outcomes, the study examines the allocation and efficiency of educational investments and related public expenditures across municipalities. Findings indicate that politically aligned municipalities receive significantly higher educational investments, ranging from approximately 65.7% to 125% more compared to non-aligned municipalities. However, aligned municipalities exhibit poorer educational outcomes despite increased financial inputs, with standardized test scores declining by 0.234 to 0.403... (More)
This paper investigates whether political alignment between local mayors and departmental governors influences public investment decisions, specifically within the Colombian context. Using a regression discontinuity design based on close electoral outcomes, the study examines the allocation and efficiency of educational investments and related public expenditures across municipalities. Findings indicate that politically aligned municipalities receive significantly higher educational investments, ranging from approximately 65.7% to 125% more compared to non-aligned municipalities. However, aligned municipalities exhibit poorer educational outcomes despite increased financial inputs, with standardized test scores declining by 0.234 to 0.403 standard deviations. These paradoxical results suggest that political alignment might foster inefficiencies or clientelistic practices in resource allocation, undermining the effectiveness of public spending. (Less)
Please use this url to cite or link to this publication:
author
Iriondo Peña, Eduardo LU
supervisor
organization
course
NEKN01 20251
year
type
H2 - Master's Degree (Two Years)
subject
keywords
"RDD" "Political Alignment" "Public Investment" "Education" "Colombia"
language
English
id
9201805
date added to LUP
2025-09-12 09:59:17
date last changed
2025-09-12 09:59:17
@misc{9201805,
  abstract     = {{This paper investigates whether political alignment between local mayors and departmental governors influences public investment decisions, specifically within the Colombian context. Using a regression discontinuity design based on close electoral outcomes, the study examines the allocation and efficiency of educational investments and related public expenditures across municipalities. Findings indicate that politically aligned municipalities receive significantly higher educational investments, ranging from approximately 65.7% to 125% more compared to non-aligned municipalities. However, aligned municipalities exhibit poorer educational outcomes despite increased financial inputs, with standardized test scores declining by 0.234 to 0.403 standard deviations. These paradoxical results suggest that political alignment might foster inefficiencies or clientelistic practices in resource allocation, undermining the effectiveness of public spending.}},
  author       = {{Iriondo Peña, Eduardo}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{DOES POLITICAL ALIGNMENT INFLUENCE PUBLIC INVESTMENT? A REGRESSION DISCONTINUITY APPROACH IN COLOMBIA}},
  year         = {{2025}},
}