DO POLITICS OR MAYORS' DEMOGRAPHICS MATTER FOR MUNICIPAL REVENUE EXPANSION?

This study examines whether political factors and mayors' demographics influence municipal success in expanding revenue. Data from forty Colombian municipalities over a 7-year period (1999-2005) are used to explore the relationship between mayoral demographics (age, sectorial experience and education level and type) and revenue expansion through state and national grants. Results reveal that the factors affecting approval of state grants differ from those influencing approval of national grants. When a mayor's political party is aligned with that of the governor, municipalities tend to secure more state, but not national, grants. Municipal features, such as population, local revenues and divided government, positively influence national, but not state grants. Not surprisingly, the stressful municipal context (presence of illegally armed guerrillas) negatively moderates the impact of mayors' demographics on approval of grants. If obtaining greater revenues implies greater social investment, this study suggests the importance of candidates' backgrounds when electing mayors, at least in the Colombian context.