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EFFECTS OF FEDERAL CONSTITUTIONAL GRANTS IN BRAZILIAN MUNICIPALITIES

EFFECTS OF FEDERAL CONSTITUTIONAL GRANTS IN BRAZILIAN MUNICIPALITIES 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. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Urban and Regional Development Studies Wiley

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References (92)

Publisher
Wiley
Copyright
© 2019 The Applied Regional Science Conference (ARSC) and John Wiley & Sons Australia, Ltd
ISSN
0917-0553
eISSN
1467-940X
DOI
10.1111/rurd.12103
Publisher site
See Article on Publisher Site

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.

Journal

Review of Urban and Regional Development StudiesWiley

Published: Nov 1, 2019

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