Abstract/Summary

This paper analyzes the conditions under which major infrastructural investments generate electoral returns. It addresses when and how the constraints imposed by myopic voters under democracy can be overcome. We argue that sustained policy spillovers are critical to broadening the pool of beneficiaries and yielding significant returns to the incumbent in the medium to long run. We make this case by analyzing Luz para Todos (LPT)-- a large-scale rural electrification scheme implemented in Brazil by the Workers' Party (PT). Leveraging the LPT's quasi-experimental allocation, we document its positive and persistent impact on the PT's vote support several years after the program started running. We then illustrate the mechanism of policy spillovers by showing the impact of the LPT on the provision of education in targeted areas. Our findings suggest that infrastructure policies are more likely to generate electoral returns when the policy provision entails spillover effects through other policies.