Identifying gatekeepers in the allocation of public funds: a spatial econometric analysis

Abstract

This paper examines the role of spatial and political factors in the allocation of discretionary public goods, contributing notably to the study of distributive politics in two ways. First, the concept of proximity is redefined by incorporating a political dimension into the spatial neighborhood matrix, thus extending traditional method- ologies of spatial econometrics. Second, the application of this method in the Chilean context reveals that senators, as opposed to local authorities, are the principal gate- keepers in the allocation of non-programmatic resources. This finding is significant, overshadowing factors such as poverty, population size, and the alignment of mayors with the central government. Given the substantial political capital held by senators, the results indicate that political hierarchy plays a crucial role in influencing resource distribution.