Grants and Marginal Cost of Public Funding: Empirical Evidence for Local Governments in Brazil
Autor(a) principal: | |
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Data de Publicação: | 2018 |
Outros Autores: | , |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Revista Brasileira de Economia (Online) |
Texto Completo: | https://periodicos.fgv.br/rbe/article/view/57961 |
Resumo: | This paper documents empirical evidence on price-effect caused by lumpsumgrants for local governments in Brazil between 2006 to 2010. Dahlby(2011) demonstrates theoretically that lump-sum grants can reduce thecost of public goods provision (price-effect), in addition to the traditionalincome effect. Our contributions are threefold. First we estimated semielasticityof the effects of tax rate changes on tax base (−0.016). Second, wecalculate the MCF of the local tax imposed on the supply of services (ISS)for Brazilian municipalities (average of 0.04). Finally, we estimate the priceeffectestimation for ISS tax. Our results suggests that for the entire sample,that an increase in R$ 1.00 in per capita unconditional transfers reducesthe local price effect (MCF) around 0.07%, but this result is not consistentlyestimated across all subsamples. |
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Revista Brasileira de Economia (Online) |
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Grants and Marginal Cost of Public Funding: Empirical Evidence for Local Governments in BrazilGrants and marginal cost of public funding: Empirical evidence for local governments in BrazilPrice effectincome effectgrantsmarginal cost of public provision.This paper documents empirical evidence on price-effect caused by lumpsumgrants for local governments in Brazil between 2006 to 2010. Dahlby(2011) demonstrates theoretically that lump-sum grants can reduce thecost of public goods provision (price-effect), in addition to the traditionalincome effect. Our contributions are threefold. First we estimated semielasticityof the effects of tax rate changes on tax base (−0.016). Second, wecalculate the MCF of the local tax imposed on the supply of services (ISS)for Brazilian municipalities (average of 0.04). Finally, we estimate the priceeffectestimation for ISS tax. Our results suggests that for the entire sample,that an increase in R$ 1.00 in per capita unconditional transfers reducesthe local price effect (MCF) around 0.07%, but this result is not consistentlyestimated across all subsamples.This paper documents empirical evidence on price-effect caused by unconditional transfers for local governments in Brazil. Dahlby (2011) demonstrates theoretically that lump-sum transfers can reduce the cost of public goods provision (price-effect), in addition to the traditional income effect. Our contributions are threefold. First, we estimate the effects off tax rate changes on tax base. More important, we calculate the marginal cost of public funding (MCF) regarding the local tax imposed on the supply of services (ISS). Third, we control for potential simultaneity between unconditional transfers and local tax revenue in a two-stage least square approach using instrumental variables. Our price-effect estimation for tertiary sector tax suggests that a 10% increase in the amount of unconditional transfers resources reduces the local price effect (MCF) around 0.01%.EGV EPGE2018-12-12info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionArticlesArtigosapplication/pdfhttps://periodicos.fgv.br/rbe/article/view/57961Revista Brasileira de Economia; Vol. 72 No. 4 (2018): OUT-DEZ; 479-496Revista Brasileira de Economia; v. 72 n. 4 (2018): OUT-DEZ; 479-4961806-91340034-7140reponame:Revista Brasileira de Economia (Online)instname:Fundação Getulio Vargas (FGV)instacron:FGVenghttps://periodicos.fgv.br/rbe/article/view/57961/74546Copyright (c) 2018 Revista Brasileira de Economiainfo:eu-repo/semantics/openAccessMattos, EnlinsonCardim, RafaelPoliti, Ricardo2018-12-13T16:28:21Zoai:ojs.periodicos.fgv.br:article/57961Revistahttps://periodicos.fgv.br/rbe/https://periodicos.fgv.br/rbe/oai||rbe@fgv.br1806-91340034-7140opendoar:2024-03-06T13:03:43.673855Revista Brasileira de Economia (Online) - Fundação Getulio Vargas (FGV)true |
dc.title.none.fl_str_mv |
Grants and Marginal Cost of Public Funding: Empirical Evidence for Local Governments in Brazil 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 grants marginal cost of public provision. |
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 grants marginal cost of public provision. |
topic |
Price effect income effect grants marginal cost of public provision. |
description |
This paper documents empirical evidence on price-effect caused by lumpsumgrants for local governments in Brazil between 2006 to 2010. Dahlby(2011) demonstrates theoretically that lump-sum grants can reduce thecost of public goods provision (price-effect), in addition to the traditionalincome effect. Our contributions are threefold. First we estimated semielasticityof the effects of tax rate changes on tax base (−0.016). Second, wecalculate the MCF of the local tax imposed on the supply of services (ISS)for Brazilian municipalities (average of 0.04). Finally, we estimate the priceeffectestimation for ISS tax. Our results suggests that for the entire sample,that an increase in R$ 1.00 in per capita unconditional transfers reducesthe local price effect (MCF) around 0.07%, but this result is not consistentlyestimated across all subsamples. |
publishDate |
2018 |
dc.date.none.fl_str_mv |
2018-12-12 |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion Articles Artigos |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
https://periodicos.fgv.br/rbe/article/view/57961 |
url |
https://periodicos.fgv.br/rbe/article/view/57961 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
https://periodicos.fgv.br/rbe/article/view/57961/74546 |
dc.rights.driver.fl_str_mv |
Copyright (c) 2018 Revista Brasileira de Economia info:eu-repo/semantics/openAccess |
rights_invalid_str_mv |
Copyright (c) 2018 Revista Brasileira de Economia |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
EGV EPGE |
publisher.none.fl_str_mv |
EGV EPGE |
dc.source.none.fl_str_mv |
Revista Brasileira de Economia; Vol. 72 No. 4 (2018): OUT-DEZ; 479-496 Revista Brasileira de Economia; v. 72 n. 4 (2018): OUT-DEZ; 479-496 1806-9134 0034-7140 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 |
_version_ |
1798943115238703104 |