Fiscal Effects of the MunicipalEmancipations in Brazil post1988
DOI:
https://doi.org/10.55532/1806-8944.2020.74Keywords:
Municipal Emancipations, Local Public Service, Economies of ScaleAbstract
In this study, we carry out a set of analysis that seek to clarify the fiscal effects of the
municipal emancipations that occured in Brazil after the approval of the 1988 federal
constitution. Our results indicate that the creation of new municipalities potentially contributed
to the economic growth of rural areas. However, they may also have increased the inefficiency
in the provision of local public services. It became evident, through the use of a simple pairing
technique, that municipalities that underwent a subdivision process had higher costs than others
with similar overall characteristics, and that the financing of these greater expenses was made
possible by increased fiscal grants from upper layers of government. Finally, based on a set of
linear regressions, we estimated the increase in public spending resulting from the
emancipations at 25.6 billion reais in 2016, or 0.41% of GDP.
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BYRNES, J.; DOLLERY, B. Do Economies of Scale Exist in Australian Local Government? A Review of the Research Evidence. Urban Policy and Research, v. 20, n. 4, p. 391-414, 2002.
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DREW, J.; KORTT, M. A. Economies of Scale and Local Government Expenditure: Evidence From Australia. Administration and Society, v. 46, n. 6, p. 632-653, 2014.
FERRARI, S. Criação de Municípios e Debate Científico. Revista de Informação Legislativa, v. 53, n. 211, p. 55-80, 2016.
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HOLCOMBE, R. G.; WILLIAMS, D. W.; Are There Economies of Scale in Municipal Government Expenditures?. Public Finance and Management, v. 9, n. 3, p. 416-438, 2009.
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OATES, W, E. An Essay on Fiscal Federalism. Journal of Economic Literature. v. 37, n. 3, p. 1120-1149, 1999.
ROESEL, F. Do Mergers of Large Local Governments Reduce Expenditures? Evidence From Germany Using the Synthetic Control Method. European Journal of Political Economy, v. 50, p. 22-36, 2017.
ROSENBAUM, P. R.; RUBIN, D. B. The Central Role of the Propensity Score in Observational Studies for Causal Effects. Biometrika, v. 70, n. 1, p. 41-55, 1983.
RUBIN, D. B. Assignment to Treatment Group on the Basis of a Covariate. Journal of Educational Statistics, v. 2, n. 1, p. 1-26 1977.
SOUKOPOVA, J.; NEMEC, J; MATEJOVA, L.; STRUCK, M. Municipality Size and Local Public Services: Do Economies of Scale Exist?. Journal of Public Administration and Policy, v. 7, n. 2, p. 151-171, 2014.
SOUTHWICK, L. Economies of Scale in Local Government: General Government Spending. iBusiness, v. 4, p. 265-278, 2012.
SOUZA, M. C. S.; RAMOS, F. Eficiência Técnica e Retornos de Escala na Produção de Serviços Públicos Municipais: o Caso do Nordeste e do Sudeste Brasileiros. Revista Brasileira de Economia, v. 4, p. 433-461, 1999.
SWIANIEWICZ, P.; LUKOMSKA, J. Is Small Beautiful? The Quasi-Experimental Analysis of the Impact of Territorial Fragmentation on Costs in Polish Local Governments. Urban Affairs Review, 2017. 24 p.
TIEBOUT, C.M. A Pure Theory of Local Expenditures. The Journal of Political Economy, v. 64, n. 5, p. 416-424, 1956.
TOMIO, F. R. L. A Criação de Municípios Após a Constituição de 1988. Revista Brasileira de Ciências Sociais, v. 17, n. 48, p. 61-89, 2002.
Published
09-09-2020
How to Cite
De Biase, P., & Luduvice, F. (2020). Fiscal Effects of the MunicipalEmancipations in Brazil post1988. CADERNOS DE FINANÇAS PÚBLICAS, 20(02). https://doi.org/10.55532/1806-8944.2020.74
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