Spreading Jam Across the National Toast: Royalties and Local Fiscal Capacities
Andrés Álvarez,
Brigitte Castañeda and
Marc Hofstetter
Additional contact information
Brigitte Castañeda: Universidad de los Andes
Authors registered in the RePEc Author Service: Brigitte Castaneda Rodriguez
No 21389, Documentos CEDE from Universidad de los Andes, Facultad de Economía, CEDE
Abstract:
How do subnational tax collection efforts respond to windfall revenues from natural resource royalties? Conversely, what are the fiscal implications when these revenues decline? This paper investigates the effects of Colombia’s 2012 reform, which substantially restructured the allocation of mining royalties among municipalities. By analyzing this legal shift, we assess changes in municipal tax collection behavior. Municipalities that experienced a reduction in royalties intensified their tax collection efforts; however, these efforts did not fully offset the revenue losses. In contrast, municipalities that benefited from increased royalties reduced their tax collection activities, resulting in no net change in overall municipal income. These findings contribute to the literature on the resource curse by offering a subnational perspective on the fiscal dynamics of resource windfalls
Keywords: Taxes; royalties; resource curse. (search for similar items in EconPapers)
JEL-codes: H71 H72 H83 P11 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2025-06-16
New Economics Papers: this item is included in nep-lam and nep-pbe
References: Add references at CitEc
Citations:
Downloads: (external link)
https://repositorio.uniandes.edu.co/bitstreams/han ... 308/dcede2025-17.pdf Full text
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:col:000089:021389
Access Statistics for this paper
More papers in Documentos CEDE from Universidad de los Andes, Facultad de Economía, CEDE Contact information at EDIRC.
Bibliographic data for series maintained by Universidad De Los Andes-Cede ().