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Who has the most resources to govern? A comparison between states and local governments per capital revenue

David Rosenblatt and Gil Shildo ()

Brazilian Journal of Political Economy, 1996, vol. 16, issue 1, 107-113

Abstract: This paper examines differences in per capita revenues across Brazil’s states andcapital municipalities. It provides a theoretical overview of Brazil’s fiscal equalization programs(the State and Municipal “Participation” Funds). The paper then provides evidencethat these programs are not only failing to meet their equalization objectives, but in additionthey are creating distorted patterns of revenues per capita across states and municipalities:some economically poor states and municipalities have revenues per capita far above thenational average. This pattern of revenues per capita should be brought to the public’s andpolicy makers’ attention so that they may: (i) better evaluate the performance of state and local governments, and (ii) better evaluate proposals for revising Brazil’s system of fiscalfederalism. JEL Classification: H71; H72; H77.

Keywords: Public expenditure; fiscal federalism; intergovernmental relations (search for similar items in EconPapers)
Date: 1996
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