Grants and Marginal Cost of Public Funding: Empirical Evidence for Local Governments in Brazil

Detalhes bibliográficos
Autor(a) principal: Mattos,Enlinson
Data de Publicação: 2018
Outros Autores: Cardim,Rafael, Politi,Ricardo
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Revista Brasileira de Economia (Online)
Texto Completo: http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0034-71402018000400479
Resumo: Abstract This paper documents empirical evidence on price-effect caused by lumpsum grants for local governments in Brazil between 2006 to 2010. Dahlby (2011) demonstrates theoretically that lump-sum grants can reduce the cost of public goods provision (price-effect), in addition to the traditional income effect. Our contributions are threefold. First we estimated semielasticity of the effects of tax rate changes on tax base (−0.016). Second, we calculate the MCF of the local tax imposed on the supply of services (ISS) for Brazilian municipalities (average of 0.04). Finally, we estimate the priceeffect estimation for ISS tax. Our results suggests that for the entire sample, that an increase in R$ 1.00 in per capita unconditional transfers reduces the local price effect (MCF) around 0.07%, but this result is not consistently estimated across all subsamples.
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spelling Grants and Marginal Cost of Public Funding: Empirical Evidence for Local Governments in BrazilPrice effectincome effecttransferstaxesfiscal federalismAbstract This paper documents empirical evidence on price-effect caused by lumpsum grants for local governments in Brazil between 2006 to 2010. Dahlby (2011) demonstrates theoretically that lump-sum grants can reduce the cost of public goods provision (price-effect), in addition to the traditional income effect. Our contributions are threefold. First we estimated semielasticity of the effects of tax rate changes on tax base (−0.016). Second, we calculate the MCF of the local tax imposed on the supply of services (ISS) for Brazilian municipalities (average of 0.04). Finally, we estimate the priceeffect estimation for ISS tax. Our results suggests that for the entire sample, that an increase in R$ 1.00 in per capita unconditional transfers reduces the local price effect (MCF) around 0.07%, but this result is not consistently estimated across all subsamples.Fundação Getúlio Vargas2018-12-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersiontext/htmlhttp://old.scielo.br/scielo.php?script=sci_arttext&pid=S0034-71402018000400479Revista Brasileira de Economia v.72 n.4 2018reponame:Revista Brasileira de Economia (Online)instname:Fundação Getulio Vargas (FGV)instacron:FGV10.5935/0034-7140.20180023info:eu-repo/semantics/openAccessMattos,EnlinsonCardim,RafaelPoliti,Ricardoeng2018-12-18T00:00:00Zoai:scielo:S0034-71402018000400479Revistahttp://bibliotecadigital.fgv.br/ojs/index.php/rbe/issue/archivehttps://old.scielo.br/oai/scielo-oai.php||rbe@fgv.br1806-91340034-7140opendoar:2018-12-18T00:00Revista Brasileira de Economia (Online) - Fundação Getulio Vargas (FGV)false
dc.title.none.fl_str_mv Grants and Marginal Cost of Public Funding: Empirical Evidence for Local Governments in Brazil
title Grants and Marginal Cost of Public Funding: Empirical Evidence for Local Governments in Brazil
spellingShingle Grants and Marginal Cost of Public Funding: Empirical Evidence for Local Governments in Brazil
Mattos,Enlinson
Price effect
income effect
transfers
taxes
fiscal federalism
title_short Grants and Marginal Cost of Public Funding: Empirical Evidence for Local Governments in Brazil
title_full Grants and Marginal Cost of Public Funding: Empirical Evidence for Local Governments in Brazil
title_fullStr Grants and Marginal Cost of Public Funding: Empirical Evidence for Local Governments in Brazil
title_full_unstemmed Grants and Marginal Cost of Public Funding: Empirical Evidence for Local Governments in Brazil
title_sort Grants and Marginal Cost of Public Funding: Empirical Evidence for Local Governments in Brazil
author Mattos,Enlinson
author_facet Mattos,Enlinson
Cardim,Rafael
Politi,Ricardo
author_role author
author2 Cardim,Rafael
Politi,Ricardo
author2_role author
author
dc.contributor.author.fl_str_mv Mattos,Enlinson
Cardim,Rafael
Politi,Ricardo
dc.subject.por.fl_str_mv Price effect
income effect
transfers
taxes
fiscal federalism
topic Price effect
income effect
transfers
taxes
fiscal federalism
description Abstract This paper documents empirical evidence on price-effect caused by lumpsum grants for local governments in Brazil between 2006 to 2010. Dahlby (2011) demonstrates theoretically that lump-sum grants can reduce the cost of public goods provision (price-effect), in addition to the traditional income effect. Our contributions are threefold. First we estimated semielasticity of the effects of tax rate changes on tax base (−0.016). Second, we calculate the MCF of the local tax imposed on the supply of services (ISS) for Brazilian municipalities (average of 0.04). Finally, we estimate the priceeffect estimation for ISS tax. Our results suggests that for the entire sample, that an increase in R$ 1.00 in per capita unconditional transfers reduces the local price effect (MCF) around 0.07%, but this result is not consistently estimated across all subsamples.
publishDate 2018
dc.date.none.fl_str_mv 2018-12-01
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0034-71402018000400479
url http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0034-71402018000400479
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv 10.5935/0034-7140.20180023
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv text/html
dc.publisher.none.fl_str_mv Fundação Getúlio Vargas
publisher.none.fl_str_mv Fundação Getúlio Vargas
dc.source.none.fl_str_mv Revista Brasileira de Economia v.72 n.4 2018
reponame:Revista Brasileira de Economia (Online)
instname:Fundação Getulio Vargas (FGV)
instacron:FGV
instname_str Fundação Getulio Vargas (FGV)
instacron_str FGV
institution FGV
reponame_str Revista Brasileira de Economia (Online)
collection Revista Brasileira de Economia (Online)
repository.name.fl_str_mv Revista Brasileira de Economia (Online) - Fundação Getulio Vargas (FGV)
repository.mail.fl_str_mv ||rbe@fgv.br
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