FISCAL ILLUSION AND LOCAL GOVERNMENT SPENDING IN MEXICO

Autores

  • Jorge Ibarra Salazar Ipea
  • André Varella Mollick University of Texas

Resumo

In this paper we estimate the effect of transfers on expenditure of local Mexican governments. We find evidence of the flypaper effect over the years 1975 to 2000 in a partial sense. According to the linear model, and consistent with previous studies for postwar United States, the effect of grants at local expenditures is statistically positive (0.753) and at the grantor’s outlays is statistically negative (–3.250). The estimation in first-differences confirms only the result for local governments.  Therefore, as grants increase, state and municipal government outlays increase, while the statistic effect at the grantor’s level is not robust.

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Biografia do Autor

  • Jorge Ibarra Salazar, Ipea

    Departamento de Economía, Instituto Tecnológico y de Estudios Superiores de Monterrey (ITESM) – Campus Monterrey México.

  • André Varella Mollick, University of Texas

    Department of Economics and Finance, College of Business Administration, University of Texas.

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Publicado

26-05-2022

Como Citar

FISCAL ILLUSION AND LOCAL GOVERNMENT SPENDING IN MEXICO. (2022). Planejamento E Políticas Públicas, 31. https://www.ipea.gov.br/ppp/index.php/PPP/article/view/18