TY - JOUR T1 - The Fiscal Impact of Natural Resource Windfalls: Evidence from a Peruvian Natural Experiment JF - Land Economics JO - Land Econ SP - 577 LP - 598 DO - 10.3368/le.95.4.577 VL - 95 IS - 4 AU - Leonardo Corral AU - Heath Henderson AU - Juan Jose Miranda Y1 - 2019/11/01 UR - http://le.uwpress.org/content/95/4/577.abstract N2 - We study the local effect of natural resource windfalls by examining a Peruvian natural experiment. We exploit the rules governing the allocation of the Camisea Fund for Socioeconomic Development (FOCAM) to identify the effect of the associated transfers on municipal accounts, local infrastructure, and economic development. We find evidence of positive impacts on municipal capital expenditures and local infrastructure. We also find evidence of a negative impact on municipal current expenditures. Specifically, we find that municipalities with low absorptive capacity coped with the increased administrative burden of FOCAM transfers by reallocating administrative effort away from executing current expenditures. (JEL H72, O13) ER -