Capture of fiscal transfers: a study of Brazilian local governments

This paper deals with a problem observed in federal fiscal relations: the capture of transfers received by local interest groups. Four hypotheses established in the literature are tested: capture is expected to increase with fiscal illusion, low bargaining power of the voter, over-financing of some...

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Main Author: Marcos Mendes
Format: Article
Language:Portuguese
Published: Universidade de São Paulo 2005-09-01
Series:Economia Aplicada
Subjects:
Online Access:http://www.scielo.br/scielo.php?script=sci_arttext&pid=S1413-80502005000300005
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author Marcos Mendes
author_facet Marcos Mendes
author_sort Marcos Mendes
collection DOAJ
description This paper deals with a problem observed in federal fiscal relations: the capture of transfers received by local interest groups. Four hypotheses established in the literature are tested: capture is expected to increase with fiscal illusion, low bargaining power of the voter, over-financing of some local governments, and degree of poverty. The empirical tests use data from Brazilian local governments. The econometric results are coherent with the hypotheses and give hints on how to prevent capture when designing an intergovernmental transfer system.<br>O artigo analisa um problema observado nas relações fiscais entre entes de uma federação: a captura, por grupos de interesse, das transferências recebidas por governos locais. Quatro hipóteses estabelecidas pela literatura são testadas: a captura cresce com o aumento do grau de ilusão fiscal, com a redução do poder de barganha do eleitor, nos governos locais sobrefinanciados e com a elevação da pobreza local. Os testes empíricos usam dados dos municípios brasileiros. Os resultados econométricos são coerentes com as hipóteses estabelecidas pela literatura e indicam caminhos para a prevenção da captura quando do dese-nho do sistema de transferências intergovernamentais.
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spelling doaj.art-46c90786c462442e90e835144a7c068e2022-12-22T01:06:39ZporUniversidade de São PauloEconomia Aplicada1413-80501980-53302005-09-019342744410.1590/S1413-80502005000300005Capture of fiscal transfers: a study of Brazilian local governmentsMarcos MendesThis paper deals with a problem observed in federal fiscal relations: the capture of transfers received by local interest groups. Four hypotheses established in the literature are tested: capture is expected to increase with fiscal illusion, low bargaining power of the voter, over-financing of some local governments, and degree of poverty. The empirical tests use data from Brazilian local governments. The econometric results are coherent with the hypotheses and give hints on how to prevent capture when designing an intergovernmental transfer system.<br>O artigo analisa um problema observado nas relações fiscais entre entes de uma federação: a captura, por grupos de interesse, das transferências recebidas por governos locais. Quatro hipóteses estabelecidas pela literatura são testadas: a captura cresce com o aumento do grau de ilusão fiscal, com a redução do poder de barganha do eleitor, nos governos locais sobrefinanciados e com a elevação da pobreza local. Os testes empíricos usam dados dos municípios brasileiros. Os resultados econométricos são coerentes com as hipóteses estabelecidas pela literatura e indicam caminhos para a prevenção da captura quando do dese-nho do sistema de transferências intergovernamentais.http://www.scielo.br/scielo.php?script=sci_arttext&pid=S1413-80502005000300005federalismo fiscalcapturatransferências intergovernamentaisgoverno localmunicípios brasileiroslegislativofiscal federalismcaptureintergovernamental transferslocal governmentsBrazilian municipalitieslegislative
spellingShingle Marcos Mendes
Capture of fiscal transfers: a study of Brazilian local governments
Economia Aplicada
federalismo fiscal
captura
transferências intergovernamentais
governo local
municípios brasileiros
legislativo
fiscal federalism
capture
intergovernamental transfers
local governments
Brazilian municipalities
legislative
title Capture of fiscal transfers: a study of Brazilian local governments
title_full Capture of fiscal transfers: a study of Brazilian local governments
title_fullStr Capture of fiscal transfers: a study of Brazilian local governments
title_full_unstemmed Capture of fiscal transfers: a study of Brazilian local governments
title_short Capture of fiscal transfers: a study of Brazilian local governments
title_sort capture of fiscal transfers a study of brazilian local governments
topic federalismo fiscal
captura
transferências intergovernamentais
governo local
municípios brasileiros
legislativo
fiscal federalism
capture
intergovernamental transfers
local governments
Brazilian municipalities
legislative
url http://www.scielo.br/scielo.php?script=sci_arttext&pid=S1413-80502005000300005
work_keys_str_mv AT marcosmendes captureoffiscaltransfersastudyofbrazilianlocalgovernments