Impact of ISSQN on tolls on municipal revenues and expenditures: a spatial panel study

Leonardo Portes Merlini () and André Chagas

No 2023_14, Working Papers, Department of Economics from University of São Paulo (FEA-USP)

Abstract: From the mid-1990s, the federal and state governments began to grant a portion of road infrastructure to the private administration through public-private partnerships under the Rehabilitate-Operate-Transfer model. This economic activity constitutes a taxable event for the collection of the Tax on Services of Any Nature (ISSQN), a tax subject to municipal and Federal District jurisdictions. The municipalities adjacent to the extension of the highway in their territories now have an additional source of income. This work sought to analyze the impacts that this specific collection generates on municipal finances, investigating possible strategic relationships between municipalities and their neighbors. Twenty-nine parametric models were estimated in the functional form of Spatial Durbin, 17 relating to Expenditures and 12 to Public Revenues, using the fiscal data available at Finbra. The results indicate that neighboring municipalities change their expenditures mainly with Education and Culture and Transport. They also modify the composition of their revenues, exempting other ISSQN taxpayers.

Keywords: Road concessions; Spatial econometrics; Public finance; Strategic interactions (search for similar items in EconPapers)
JEL-codes: C21 C23 H70 H71 H72 H75 R1 R42 (search for similar items in EconPapers)
Date: 2023-11-21
New Economics Papers: this item is included in nep-tre and nep-ure
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.repec.eae.fea.usp.br/documentos/Merlini_Chagas_14WP.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spa:wpaper:2023wpecon14

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Working Papers, Department of Economics from University of São Paulo (FEA-USP) Contact information at EDIRC.
Bibliographic data for series maintained by Pedro Garcia Duarte ( this e-mail address is bad, please contact ).