Analisando o comportamento dos gastos públicos nos municípios cearenses: uma análise do efeito Flypaper

Abstract

The flypaper effect is one of the most discussed topics of the literature of fiscal federalism, given that the distortions caused by the transfer system because the proceeds of transfers have a more stimulating effect on government spending than an equivalent increase in private income of the population resident. Therefore, this work aims to analyze the behavior of public expenditure in the municipalities of Ceará consistent with the practice adopted by the literature as flypaper effect. For this, we used the methodology of panel data, since the information about expenses, revenues, population, PIB and transfers of the 184 municipalities in Ceará covers the period between 1999 and 2009. According to the results measured by the marginal effect of income, represented by GDP spent in the function, overcomes noticed for the current transfer can be concluded that the practice described in the literature as flypaper effect is not consistent with the reality of municipalities in Ceará.