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Popularity shocks and political selection : the effects of anti-corruption audits on candidates quality

Cavalcanti, Francisco ; Daniele, Gianmarco ; Galletta, Sergio

We show that the disclosure of information about a government's conduct affects the types of candidates who stand for election. Our empirical test focuses on Brazilian city council elections in 2004 and 2008. The identification strategy exploits the randomness of the timing of the release of audit reports on the (mis)use of federal funds by local governments. We observe that when the audit...