How the Cake is Distributed: The Case of Portuguese Decentralized Grants

Paulo Reis Mourão
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Paulo Reis Mourão: Department of Economics, Economics and Management School, University of Minho, 4700 Braga, Portugal
Authors registered in the RePEc Author Service: Paulo Mourão

Environment and Planning A, 2012, vol. 44, issue 2, 477-490

Abstract: This paper will discuss how the distribution of decentralized grants for Portuguese municipalities affects the evolution of the total amounts given by the Portuguese government to Portuguese municipalities. After a review of the literature I discuss a model based on a Bergson–Samuelson function. I used official data (from Portuguese Budget Reports) since 1982 for studying the decentralized grants. I also regress on other Portuguese time series in order to control for the effect of inequality series. Applying cointegration techniques and testing the causality direction, I conclude that there is a statistical validation that, as the distribution becomes more unequal, the total amounts of the transferred grants decrease.

Keywords: distribution criteria; government transfers; decentralization (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:sae:envira:v:44:y:2012:i:2:p:477-490

DOI: 10.1068/a44197

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