O impacto das transferências incondicionais nas despesas dos municípios cearenses: uma análise do Efeito Flypaper

Abstract

This paper seeks to investigate the impact of unconditional transfers in the municipalities of the State of Ceará, considering a sample of 171 municipalities between the years 2003 and 2012 through Dashboard Data. More specifically, to verify the presence of the flypaper effect in the finances of the analyzed municipalities. The methodology used makes use of a panel data model with fixed effects. The results show that the elasticity of expenditure in relation to transfers is greater than the elasticity of expenditure in relation to income, that is to say, the expenses are more sensitive to increases in transfers than income, which empirically proves the presence of the effect Flypaper in the finances of the studied municipalities. This confirms the importance of the study of public finances in order to assist in economic policies and in the better allocation of resources.