The political economy of personnel expenditures:

Vol. 25 No. 1 (2005)

Jan-Mar / 2005
Published January 1, 2005

How to Cite

Ames, Barry, Taeko Hiroi, and Lucio Renno. 2005. “The Political Economy of Personnel Expenditures: : Brazilian States, 1965-1994”. Brazilian Journal of Political Economy 25 (1):53-73.

The political economy of personnel expenditures:

brazilian states, 1965-1994

Barry Ames
Department of Political Science, University of Pittsburgh
Taeko Hiroi
Department of Political Science, University of Pittsburgh
Lucio Renno
Assistant Professor, Center for Latin American Studies. University of Arizona
Brazilian Journal of Political Economy, Vol. 25 No. 1 (2005), Jan-Mar / 2005, Pages 53-73


The main purpose of the paper is to test a model that explains variation in the ratio of expenditure with personnel in Brazilian states from 1965 to 1994. The independent variables include indicators of the political environment in the distinct states, such as number of veto players and level of political competition. Furthermore, variables that model the business electoral cycle and institutional changes during the period were also included in the model. The budgetary, electoral and legislative data were collected for 22 states from 1965 to 1995. OLS Regression with panel corrected standard errors was used to test the main hypotheses. Results indicate that the impact of political variables appears to be conditioned by the broader national institutional framework. During the authoritarian period expenditures with personnel were influenced by the electoral business cycle and by the presence of more than one party in the state legislature. In the democratic period, electoral vulnerability of state legislators and the electoral cycle are the most important political factors influencing expenditures with personnel.

JEL Classification: H72.

Keywords: Patronage State Politics Brazil