Evaluating the Impact of Brazil's Central Audit Program on Municipal Provision of Health Services

Cati, Regina Célia; Nishijima, Marislei; Randall, Ellis P.

doi:10.2139/ssrn.3104895

Cited by 3 publications

(2 citation statements)

References 23 publications

(17 reference statements)

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“…With respect to government and economic performance outcomes, research suggests the auditing program has had varied effects. Some studies suggest that municipal audits lead to positive outcomes, including improvements in firm performance and economic growth (Colonnelli & Prem, ), reductions in infant mortality (Nishijima, Cati & Ellis, ), and fewer incidences of dengue fever (Benini Duarte, de Souza Melo, & da Silva, forthcoming). However, other research finds no relationship between the auditing program and measures of public healthcare provision (Nishijima, Cati, & Ellis, ; Zamboni & Litschig, ) nor compliance with the requirements of Brazil's conditional cash transfer program, Bolsa Família (Zamboni & Litschig, ).…”

Section: The Brazilian Municipal Auditing Programmentioning

confidence: 99%

“…Some studies suggest that municipal audits lead to positive outcomes, including improvements in firm performance and economic growth (Colonnelli & Prem, ), reductions in infant mortality (Nishijima, Cati & Ellis, ), and fewer incidences of dengue fever (Benini Duarte, de Souza Melo, & da Silva, forthcoming). However, other research finds no relationship between the auditing program and measures of public healthcare provision (Nishijima, Cati, & Ellis, ; Zamboni & Litschig, ) nor compliance with the requirements of Brazil's conditional cash transfer program, Bolsa Família (Zamboni & Litschig, ). Two additional studies also suggest that audits can have perverse effects, including increasing deforestation in the Amazon region due to a shift in the nature of corruption (Cisneros, Hargrave, & Kis‐Katos, ) and worsening health outcomes as a result of decreased public spending on healthcare (Lichand, Lopes, & Medeiros, ).…”

Section: The Brazilian Municipal Auditing Programmentioning

confidence: 99%

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Consequences of an Anti‐Corruption Experiment for Local Government Performance in Brazil

Funk¹,

Owen²

2020

J Policy Anal Manage

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Decentralization reforms, implemented to improve efficiency and service provision, pose a challenge for federal governments that would like to ensure that federal resources are used appropriately by local governments. To overcome this challenge, some federal governments have implemented costly oversight programs aimed at improving municipal governance. For instance, in 2003, the Brazilian federal government introduced a randomized auditing program with the goal of improving municipal performance by exposing episodes of corruption and mismanagement. Yet, we know little about whether these types of programs actually lead to improvements in local outcomes, especially in terms of service delivery. We argue that audits provide opportunities for learning that should improve performance outcomes. To test this argument, we examine municipal performance in over 5,000 Brazilian municipalities from 2001 to 2012. We utilize the random assignment of audits and estimate difference‐in‐differences regressions. We find that audited municipalities experience greater improvements in performance overall compared to unaudited municipalities, though the effect size is modest. We also find evidence that the auditing program indirectly improves municipal performance. These results indicate that top‐down oversight programs, such as the Brazilian one, are useful not only for improving transparency and accountability, but also for the provision of public services as well.

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