The influence of fiscal rules on local government: evidence from Brazil

• Ano de defesa: 2024
• Autor(a) principal: Santos, Rafael Cavalieri dos
• Tipo de documento: Dissertação
• Tipo de acesso: Acesso aberto
• Idioma: eng
• Instituição de defesa: Biblioteca Digitais de Teses e Dissertações da USP
• Palavras-chave em Português: Finanças públicas; Fiscal policy; Fiscal rules; Gastos com pessoal; Personnel expenses; Política fiscal; Public finance; Regras fiscais
• Link de acesso: https://www.teses.usp.br/teses/disponiveis/12/12138/tde-31102024-134328/

This study analyzes the effects of the Lei de Responsabilidade Fiscal (LRF) on Brazilian municipalities. More specifically, the LRF established that municipalities could not spend more than 60% of their revenues on personnel expenses. We employed quasi-experimental methods, specifically Regression Discontinuity and Event-Study, to examine the impact of the LRF\'s threshold on municipal fiscal behavior, focusing on outsourced services and investments. Our main result indicates that non-compliant municipalities increased their spending on outsourced services as a proportion of revenues and expenditures by approximately 11% after LRF, compared to the control group.