Municipal Taxes, Income, and Rainfall

Project by Aly Sanoh
This paper addresses three unresolved questions in the literature of public finance and development. First, it uses exogenous variation in rainfall across municipalities in Mali to estimate the causal effect of household income shocks on municipal level tax revenue performance. Second, it exploits a national tax collection incentive policy to measure the impacts of rainfall variation on local government spending. Third, it measures the effect of public goods capital spending on development outcomes at district levels.