Testing regional intergovernmental transfers effects in Uruguay
Using an unbalanced panel of 18 Uruguayan regional governments from 1991 to 2017, we explore the hypothesis of flypaper and asymmetrical effects on the regional public expenditures. Specifically, the flypaper hypothesis states that the propensity of sub-national governmental units to spend intergove...
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| Format: | Article |
| Language: | English |
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Universidad Iberoamericana
2021-07-01
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| Series: | Sobre México |
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| Online Access: | https://sobremexico-revista.ibero.mx/index.php/Revista_Sobre_Mexico/article/view/90 |
| _version_ | 1811191106946203648 |
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| author | Leonel Muinelo-Gallo |
| author_facet | Leonel Muinelo-Gallo |
| author_sort | Leonel Muinelo-Gallo |
| collection | DOAJ |
| description | Using an unbalanced panel of 18 Uruguayan regional governments from 1991 to 2017, we explore the hypothesis of flypaper and asymmetrical effects on the regional public expenditures. Specifically, the flypaper hypothesis states that the propensity of sub-national governmental units to spend intergovernmental unconditional transfers is higher than the propensity to spend on the demand for regional public services by local private agents. The application of panel data techniques with the use of instrumental variables highlights the presence of sizeable flypaper effect but not asymmetry ones. Our estimations also identify that political economy factors play an important role in the regional budgeting processes in Uruguay. This paper contributes to the scarce empirical evidence about the effects of unconditional central government transfers on subnational finances for middle-income countries. |
| first_indexed | 2024-04-11T15:00:10Z |
| format | Article |
| id | doaj.art-0d778c9bf4d443e2a4ac924186761b70 |
| institution | Directory Open Access Journal |
| issn | 2448-7325 |
| language | English |
| last_indexed | 2024-04-11T15:00:10Z |
| publishDate | 2021-07-01 |
| publisher | Universidad Iberoamericana |
| record_format | Article |
| series | Sobre México |
| spelling | doaj.art-0d778c9bf4d443e2a4ac924186761b702022-12-22T04:16:59ZengUniversidad IberoamericanaSobre México2448-73252021-07-01410.48102/rsm.vi4.90Testing regional intergovernmental transfers effects in UruguayLeonel Muinelo-Gallo0Instituto de Economía de la Universidad de la República - UruguayUsing an unbalanced panel of 18 Uruguayan regional governments from 1991 to 2017, we explore the hypothesis of flypaper and asymmetrical effects on the regional public expenditures. Specifically, the flypaper hypothesis states that the propensity of sub-national governmental units to spend intergovernmental unconditional transfers is higher than the propensity to spend on the demand for regional public services by local private agents. The application of panel data techniques with the use of instrumental variables highlights the presence of sizeable flypaper effect but not asymmetry ones. Our estimations also identify that political economy factors play an important role in the regional budgeting processes in Uruguay. This paper contributes to the scarce empirical evidence about the effects of unconditional central government transfers on subnational finances for middle-income countries.https://sobremexico-revista.ibero.mx/index.php/Revista_Sobre_Mexico/article/view/90fiscal federalismintergovernmental transfersflypaper effectendogeneityUruguay |
| spellingShingle | Leonel Muinelo-Gallo Testing regional intergovernmental transfers effects in Uruguay Sobre México fiscal federalism intergovernmental transfers flypaper effect endogeneity Uruguay |
| title | Testing regional intergovernmental transfers effects in Uruguay |
| title_full | Testing regional intergovernmental transfers effects in Uruguay |
| title_fullStr | Testing regional intergovernmental transfers effects in Uruguay |
| title_full_unstemmed | Testing regional intergovernmental transfers effects in Uruguay |
| title_short | Testing regional intergovernmental transfers effects in Uruguay |
| title_sort | testing regional intergovernmental transfers effects in uruguay |
| topic | fiscal federalism intergovernmental transfers flypaper effect endogeneity Uruguay |
| url | https://sobremexico-revista.ibero.mx/index.php/Revista_Sobre_Mexico/article/view/90 |
| work_keys_str_mv | AT leonelmuinelogallo testingregionalintergovernmentaltransferseffectsinuruguay |