This article first presents an econometric study suggesting that intergovernmental transfers to Brazilian municipalities are strongly partisan motivated. In light of that stylized fact, it develops an extension to Rogoff ...

The greater decentralization introduced by the Political Constitution of 1991, increased intergovernmental transfers for municipalities and departments to finance their own expenses. Through a model of double differences ...

The Brazilian fiscal-federative structure presents some peculiarities that make it distinct, especially with regard to the competences related to local governments. The transfer model and the occurrence of the flypaper ...

Extant literature concurs that fiscal transfers affect local democracy when they grant subnational governments nontax revenue. Yet there is nonetheless a mismatch between this concept and existing measures, which consider ...

Recent papers focused on the problem of weak fiscal incentives arising from imperfect interjurisdictonal arrangements which in turn distorted the fiscal federal scenario, as shared revenues dwindled following a subnational ...

Subnational governments are generally funded by fiscal rents, that is, transfers of centrally levied taxes. Existing literature concurs that fiscal federalism breeds rentierism and, consequently, hinders subnational ...

This paper introduces the progressivity of fiscal transfers into an otherwise standard heterogeneousagents (HA) model and shows how this feature has a significant effect on the aggregate dynamics following the windfall ...