Spillover effects from inter-governmental transfers between local jurisdictions in Brazil

MELO, LB (2023) Spillover effects from inter-governmental transfers between local jurisdictions in Brazil. MRes thesis, University of Nottingham.

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This paper estimates fiscal spillover effects between local jurisdiction in Brazil. The central government transfers revenues to local jurisdictions. By using an Event Study design, it shows evidences that arguable exogenous changes in revenues of a local jurisdiction has null causal spillover effects on public expenditures and number of firms of a nearby jurisdiction. When restricting the sample for jurisdictions that receive the revenue shock that are larger than their nearby jurisdictions, the result of null fiscal spillover still holds. This novel results cast doubts on a rich theoretical literature that predicts fiscal spillover's existence and also on the current empirical literature that estimates positive fiscal spillovers. JEL: H27,H30,H50,H61

Item Type: Thesis (University of Nottingham only) (MRes)
Supervisors: TORTAROLO, D
Keywords: Fiscal spillovers, fiscal transfers, public, FPM, Brazil, decentralization
Subjects: H Social sciences > HJ Public finance
Faculties/Schools: UK Campuses > Faculty of Social Sciences, Law and Education > School of Economics
Item ID: 72303
Depositing User: DE MELO, LUCAS
Date Deposited: 29 Feb 2024 13:54
Last Modified: 29 Feb 2024 13:54
URI: https://eprints.nottingham.ac.uk/id/eprint/72303

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