POVERTY AND THE POLITICAL ECONOMY OF PUBLIC EDUCATION SPENDING: EVIDENCE FROM BRAZIL

Alargebodyofliteraturehasemphasizedtheelitecaptureofdemocraticinstitutionsastheexplanationforthelowlevelsofspendingonpubliceducationinmanylow-incomedemocracies.Thispaper providesanalternativetothatlongstandinghypothesis.Motivatedbynewcross-countryfactsand evidencefromBrazilianmunicipalities,wehypothesizethatmanydemocraticdevelopingcountries mightinvestlessinpubliceducationspendingbecausepoordecisivevoterspreferthegovernment toallocateresourceselsewhere.Onepossibleexplanationisthatlow-incomevoterscouldinstead favorredistributiveprogramsthatincreasetheirincomesintheshortrun,suchascashtransfers.To testforthispossibility,wedesignandimplementanexperimentalsurveyandanincentivizedchoice experimentinBrazil.Thefindingsfrombothinterventionssupportourhypothesis.(JEL:C90,H52, I25,O15,P16)

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