Template-Type: ReDIF-Paper 1.0 Author-Name: Maximiliano Lauletta Author-Name-First: Maximiliano Author-Name-Last: Lauletta Author-Name: Martín A. Rossi Author-Name-First: Martín A. Author-Name-Last: Rossi Author-Name: Christian A. Ruzzier Author-Name-First: Christian A. Author-Name-Last: Ruzzier Title: Audits and the Quality of Government Abstract: We exploit the random assignment of Brazilian municipalities to an audit program to explore the link between audits and the quality of government. We find that audited municipalities employ less labor to provide a given level of public services, and change the way in which they screen their employees—relying less on discretion and more on merit. These improvements in bureaucratic efficiency and professionalization, which take place right away and persist four to five years after the audits, imply an increase in the quality of municipal governments. Length: 32 pages Creation-Date: 2020-11 File-URL: https://aaep.org.ar/works/works2020/Ruzzier.pdf File-Format: Application/pdf Number: 4404 Classification-JEL: D73, D78, H11, H70, J45, O12. Keywords: bureaucracy, corruption, audits, efficiency, public sector employment Handle: RePEc:aep:anales:4404