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Effects Of Federal Constitutional Grants In Brazilian Municipalities

Author

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  • Lucas Oliveira Gomes Ferreira
  • André Luiz Marques Serrano
  • Federico Revelli

Abstract

The objective of the present study is to verify the flypaper effect of 476 Brazilian municipalities from 2005 to 2012, considering the new variables as instruments of grants. Political alignment, alignment of the party, and coalition of the mayor with the federal president and of the state governor were considered as instruments of grants. A municipal tax autonomy index was considered as a control variable, which represents the percentage of local taxes in the municipal total revenues. The results allow concluding that the flypaper effect exists in Brazilian municipalities and is intensified by the alignment of the representatives in the same way of theoretical literature (Hamilton 1983; Hines & Thaler 1995; Inman 2008) and previous empirical studies in Brazil. Moreover, evidences of higher flypaper effect were found in municipalities with low tax autonomy.

Suggested Citation

  • Lucas Oliveira Gomes Ferreira & André Luiz Marques Serrano & Federico Revelli, 2019. "Effects Of Federal Constitutional Grants In Brazilian Municipalities," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 31(3), pages 203-233, November.
    • Handle: RePEc:bla:revurb:v:31:y:2019:i:3:p:203-233
    DOI: 10.1111/rurd.12103
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    Cited by:

    1. Manuel E. Lago & Santiago Lago-Peñas & Jorge Martinez-Vazquez, 2022. "On the effects of intergovernmental grants: a survey," Working Papers. Collection A: Public economics, governance and decentralization 2204, Universidade de Vigo, GEN - Governance and Economics research Network.
    2. Manuel E. Lago & Santiago Lago-Peñas & Jorge Martinez-Vazquez, 2024. "On the effects of intergovernmental grants: a survey," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 31(3), pages 856-908, June.

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