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dc.titleEvidence from a Natural Experiment on the Development Impact of Windfall Gains: The Camisea Fund in Peru
dc.contributor.authorCorral, Leonardo
dc.contributor.authorHenderson, Heath
dc.contributor.authorMiranda, Juan José
dc.contributor.orgunitOffice of Strategic Planning and Development Effectiveness
dc.coveragePeru
dc.date.available2016-03-30T00:00:00
dc.date.issue2016-03-01T00:00:00
dc.description.abstractThis document studies the economic effect of windfall gains by examining a Peruvian natural experiment. The Camisea Fund for Socioeconomic Development (FOCAM) is an inter-governmental fiscal transfer scheme that allocates natural gas royalties generated by the Camisea Gas Project to eligible subnational governments. We exploit the rules governing FOCAM allocation to identify the effect of the transfers on municipal accounts, local infrastructure, and economic development. Using a newly constructed district- level dataset for the years 2005 and 2012, we find evidence of positive impacts on municipal capital expenditures and local infrastructure. However, we also find evidence of a negative impact on municipal current expenditures. More specifically, we find that municipalities with low absorptive capacity coped with the increased administrative burden of FOCAM transfers by reallocating administrative effort toward (away from) executing capital (current) expenditures.
dc.format.extent31
dc.identifier.doihttp://dx.doi.org/10.18235/0011726
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Evidence-from-a-Natural-Experiment-on-the-Development-Impact-of-Windfall-Gains-The-Camisea-Fund-in-Peru.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectNatural Gas Royalty
dc.subjectIntergovernmental Fiscal Transfer
dc.subjectMunicipal Expenditure
dc.subjectLocal Economic Development
dc.subjectInfrastructure Investment
dc.subjectEconomic Development
dc.subjectEconomic Impact
dc.subject.jelcodeH70 - State and Local Government • Intergovernmental Relations: General
dc.subject.jelcodeO10 - Economic Development: General
dc.subject.jelcodeO54 - Latin America • Caribbean
dc.subject.jelcodeQ32 - Exhaustible Resources and Economic Development
dc.subject.keywordsNatural gas royalties;Municipal Expenditure;Local infrastructure
dc.typeWorking Papers
idb.identifier.pubnumberWorking Papers
idb.operationPE-0233
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