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Who has the most resources to govern? A comparison between states and local governments per capital revenue

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  • David Rosenblatt
  • Gil Shildo

Abstract

This paper examines differences in per capita revenues across Brazil’s states andcapital municipalities. It provides a theoretical overview of Brazil’s fiscal equalization programs(the State and Municipal “Participation” Funds). The paper then provides evidencethat these programs are not only failing to meet their equalization objectives, but in additionthey are creating distorted patterns of revenues per capita across states and municipalities:some economically poor states and municipalities have revenues per capita far above thenational average. This pattern of revenues per capita should be brought to the public’s andpolicy makers’ attention so that they may: (i) better evaluate the performance of state and local governments, and (ii) better evaluate proposals for revising Brazil’s system of fiscalfederalism. JEL Classification: H71; H72; H77.

Suggested Citation

  • David Rosenblatt & Gil Shildo, 1996. "Who has the most resources to govern? A comparison between states and local governments per capital revenue," Brazilian Journal of Political Economy, Center of Political Economy, vol. 16(1), pages 107-113.
    • Handle: RePEc:ekm:repojs:v:16:y:1996:i:1:p:107-113:id:1194
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    More about this item

    Keywords

    Public expenditure; fiscal federalism; intergovernmental relations;
    All these keywords.

    JEL classification:

    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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