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Contribution Details
| Type | Journal Article |
| Scope | Discipline-based scholarship |
| Title | Fiscal transfers, local government, and entrepreneurship |
| Organization Unit | |
| Authors |
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| Item Subtype | Original Work |
| Refereed | Yes |
| Status | Published electronically before print/final form (Epub ahead of print) |
| Language |
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| Journal Title | Journal of Policy Analysis and Management |
| Publisher | Wiley-Blackwell Publishing, Inc. |
| Geographical Reach | international |
| ISSN | 0276-8739 |
| Page Range | Epub ahead of print |
| Date | 2023 |
| Abstract Text | Can local government spending spur entrepreneurial activity? To answer this question, we study a setting where, around multiple pre‐determined and non‐manipulable thresholds, municipalities with lower tax revenues receive direct and different monetary grants from the national budget. Employing a fuzzy regression discontinuity design, we find a positive impact of fiscal transfers on the number of firms, especially sole proprietorships and small firms. The impact is stronger in municipalities where the opposition is more involved in the legislative process or more parties are represented in the municipal council. |
| Free access at | DOI |
| Digital Object Identifier | 10.1002/pam.22532 |
| Other Identification Number | merlin-id:24231 |
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