Ciclo de seminarios Centro de Economía Aplicada (CEA) - Instituto Milenio MIPP

Invitado: Mounu Prem, Einaudi Institute for Economics and Finance y Economics Department in Universidad del Rosario.

Tema: “Government Support in Times of Crisis: Evidence from Chile’s Road to Socialism”, en coautoría con Felipe González.

Abstract

Why do some governments remain popular in bad economic times? We show that transfers help to retain support in times of crisis. Our context is one of the largest infant nutrition programs in the world, implemented by Salvador Allende and his left-wing coalition in Chile (1970-1973) as part of an increase in public spending that led to an economic debacle. The delivery of three cups of milk per day to all children in the country contributed to lower infant mortality and helped to sustain the government’s popularity. The program was particularly popular among women, who were strategically targeted to increase take-up.