Portfolio allocation sits at the center of coalition government analysis because it provides access to government decision-making and constitutes a fundamental payoff in coalition formation.

🔎 The Puzzle

Portfolio posts are often treated as interchangeable, but this assumption may obscure important differences. Are all ministries equally valuable to governing parties, or do ministries differ systematically in how much influence they confer?

📊 How Portfolio Importance Was Measured

• Three dimensions of ministry importance were combined: policy, office, and budget.
• Data cover Brazilian federal ministries from 1999 to 2014.
• Factor analysis was used to generate a composite indicator of portfolio importance across those three dimensions.

📈 Key Findings

• Ministries vary substantially in importance on each of the three dimensions; a ministry that ranks low on one dimension can rank high on another.
• When policy, office, and budget are combined into a single composite score, the Ministry of Finance ranks as the most important and the Ministry of Fishery as the least important.

💡 Why It Matters

This composite indicator is a first step toward summarizing meaningful differences between ministries. It provides a more nuanced payoff metric that can be used to inform empirical analyses of coalition formation and governance in Brazil.