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Volume 8 (22) Number 1 pp. 50-71

Piotr Matuszak, Bartosz Totleben, Dawid Piątek

Department of Macroeconomics and Development Studies, Poznań University of Economics and Business

Political alignment and the allocation of the COVID-19 response funds—evidence from municipalities in Poland

Abstract:

This paper aims to analyse the allocation of the COVID-19 response funds
from the perspective of the political alignment hypothesis. The authors focus on the allocation
of the second and third rounds of the Governmental Fund for Local Investments
(part of the COVID-19 Response Fund) in Poland. Using the logit and OLS models
and the regression discontinuity design the authors show that mayors aligned with the
central government were significantly more likely to receive the funds, as well as in
higher per capita values, than mayors aligned with the opposition or unaligned with
any party in parliament when the allocation was based on a discretionary decision. The
results support the political alignment hypothesis and highlight the danger of partiality
in the allocation of the COVID-19 response funds.

pub/2022_1_50.pdf Full text available in Adobe Acrobat format:
http://www.ebr.edu.pl/volume22/issue1/2022_1_50.pdf
Keywords: political alignment, COVID-19 response funds, public spending

DOI: 10.18559/ebr.2022.1.4

For citation:

MLA Matuszak, Piotr, et al. "Political alignment and the allocation of the COVID-19 response funds—evidence from municipalities in Poland." Economics and Business Review EBR 22.1 (2022): 50-71. DOI: 10.18559/ebr.2022.1.4
APA Matuszak, P., Totleben, B., & Piątek, D. (2022). Political alignment and the allocation of the COVID-19 response funds—evidence from municipalities in Poland. Economics and Business Review EBR 22(1), 50-71 DOI: 10.18559/ebr.2022.1.4
ISO 690 MATUSZAK, Piotr, TOTLEBEN, Bartosz, PIĄTEK, Dawid. Political alignment and the allocation of the COVID-19 response funds—evidence from municipalities in Poland. Economics and Business Review EBR, 2022, 22.1: 50-71. DOI: 10.18559/ebr.2022.1.4