Pork is policy: Dissipative inclusion at the local level

Abstract

The article investigates the impact of local policies on human development indicators in Brazilian municipalities. This is an attempt to investigate the role of the legislative branch in reducing inequality and poverty through budget amendments, usually seen in derogatory form as pork barrel politics. We assess the effect of pork on municipalities using up-to-date policy evaluation techniques. Brazil is a case of extreme inequality and an active legislative branch in disbursing monies. The data set contains over 60,000 observations from all 5,500+ Brazilian municipalities for over a decade. We use matching and longitudinal data analysis techniques, treating pork as exogenous shocks, mapping how its effect reverberates on social and economic indicators in succeeding years. The results indicate a positive impact of such policies in improving local level development. However, these results are not sustainable over time, thus suggesting inclusion with a dissipative profile.