New Zambia reports:
In 2003, as part of an anti-corruption program, Brazil’s federal government began to select municipalities at random to audit their expenditures of federally-transferred funds. The findings of these audits were then made publicly available and disseminated to media sources.Using a dataset of corruption constructed from the audit reports, the authors compare the electoral outcomes of municipalities audited before versus after the 2004 elections, with the same levels of reported corruption. They show that the release of the audit outcomes had a significant impact on incumbents’ electoral performance, and that these effects were more pronounced in municipalities where local radio was present to divulge the information.
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