Estimating the Effect of Rent-Seeking on income distribution: an analysis of U.S. States and Counties

Public Choice - Prior empirical research on rent seeking has focused on estimating its effects on overall macroeconomic performance, with few studies attentive to income distribution. This paper...     

Implementation of CRM systems in Portuguese Municipalities

Customer relationship management is a business strategy which dynamically integrates a set of services with the purpose of creating value for the organisation and for their customers. In Portugal, the 2009/2010 edition of ‘Simplex for Municipalities’, the action plan carried by the Portuguese government through the Secretary's Office of State for Administrative Modernisation, makes a commitment to promote a set of initiatives in order to help citizens using the public services. This process intends to reduce costs of context which burden the economic activities, making way for the modernisation of administration. Customer relationship management assumes a central role in this context. This paper presents the main results of a survey that was carried out with Portuguese municipalities, aiming a general characterisation of the adoption of customer relationship management systems, covering several aspects, from the motivations for CRM adoption to the obtained results. The improvement of the relationship with citizens and a higher information quality are some of the most important results obtained by municipalities.     

Cherry Picking with Synthetic Controls

We evaluate whether a lack of guidance on how to choose the matching variables used in the Synthetic Control (SC) estimator creates specification-searching opportunities. We provide theoretical results showing that specification-searching opportunities are asymptotically irrelevant if we restrict to a subset of SC specifications. However, based on Monte Carlo simulations and simulations with real datasets, we show significant room for specification searching when the number of pre-treatment periods is in line with common SC applications, and when alternative specifications commonly used in SC applications are also considered. This suggests that such lack of guidance generates a substantial level of discretion in the choice of the comparison units in SC applications, undermining one of the advantages of the method. We provide recommendations to limit the possibilities for specification searching in the SC method. Finally, we analyze the possibilities for specification searching and provide our recommendations in a series of empirical applications.     

Public employment and income redistribution: causal?evidence for Brazilian municipalities

This paper examines the relationship between public employment and income redistribution in Brazilian municipalities. First, we use the requirements set forth by the Fiscal Responsibility Act as an instrument for public employment variation across municipalities. Second, our results suggest that local public employment increases income concentration instead of fostering redistribution. This result puts into perspective the model provided in Alesina et al. (J. Urban Econ. 48:219?C241, 2000) where public employment can be used as device for redistributing income in the United States. This seems to be an outcome of the current public employment structure and not an explicit public policy.