PT  - JOURNAL ARTICLE
AU  - Leonardo Corral
AU  - Heath Henderson
AU  - Juan Jose Miranda
TI  - The Fiscal Impact of Natural Resource Windfalls: Evidence from a Peruvian Natural Experiment
AID  - 10.3368/le.95.4.577
DP  - 2019 Nov 01
TA  - Land Economics
PG  - 577--598
VI  - 95
IP  - 4
4099  - http://le.uwpress.org/content/95/4/577.short
4100  - http://le.uwpress.org/content/95/4/577.full
SO  - Land Econ2019 Nov 01; 95
AB  - 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)