Departamento de Economía

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Economics of rural infrastructure : evaluating the provision of transport and electricity in Peru : 1. Electoral cycles and renegotiation of transport infrastructure concession contracts ; 2. Impact of rural electrification on education, a case study from Peru ; 3. Roads and agriculture : impacts of connectivity in Peru
(2016-03-01) Aguirre Montoya, Julio César
Using a unique governmental database from Peru, I find that electoral cycles significantly affect the hazard of renegotiation of transport infrastructure concession contracts. The effect of electoral cycles remains robust when applying a varied set of specifications. In addition, electoral cycles have positive marginal effects on the hazard of renegotiation of concession contracts between 3% and 6%. These results provide a perspective on the importance of enforcing institutional and regulatory supervisory activities of infrastructure concession contracts in order to minimize possible political influences on the contractual stability of these contracts.