Party switching and political outcomes: evidence from Brazilian municipalities

Abstract

Although party switching is a relatively rare event in most countries, the phenomenon is widespread in Brazil. This paper investigates the effects of party switching on political and economic variables between 2001 and 2012 using a database containing more than 4900 Brazilian municipalities. In particular, given that the conventional literature addresses party switching by legislators, this paper focuses on chief executives, specifically mayors, a subject that has not yet been explored in the literature. In this study, party switching is interpreted as a treatment effect: the treated group comprises municipalities whose mayors changed parties during their terms in office. The control group comprises municipalities with no party switching, but with similar likelihoods of being treated, as defined by propensity score matching (PSM) methods. Our results suggest that mayors belonging to the same party as the state governor or the president are less likely to switch parties. Moreover, switching from a different party to the state governor’s party creates the best results for switchers who want to be renominated. Regarding reelection, our panel estimations suggest that the impact of party switching on reelection is positive. Finally, we find no statistically significant effect of party switching on the amounts of transfers received by municipalities from upper government levels.