Nikolova and Marinov Research Featured at FT's Beyondbricks
In 2004 and 2005, Bulgaria was unexpectedly hit by torrential rain that caused extensive flooding. To deal with the destruction, the government awarded nearly €67m to 257 flood-stricken municipalities (see map below). For many of Bulgaria’s impoverished municipalities, the funds were a substantial financial injection, and mayors and local councils were the ultimate authority on how the money was spent. Not surprisingly in a country ranked as the second-most corrupt in the EU, the media uncovered multiple instances of local politicians pocketing the money. According to estimates by opposition parties, €59m disappeared into the coffers of firms related to the ruling political coalition.
FT's Beyondbricks piece here
The working paper is available from the SSRN here