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• W2022464046 abstract "Purpose This paper seeks to investigate the role of income‐inequality on the size of local government. Design/methodology/approach First, the paper extends the model proposed by Meltzer and Richard, allowing for spatial interaction in the redistributive in‐kind transfers from the local governments. Second, it estimates the determinants of the size in local government taking into consideration spatial dependence in the variables. Findings This model points that the poorer the median voter is, the higher should be the level of local public expenditures, but the spillover effect (spatial effect) in spending is undetermined. Second, using data on Brazilian states public finance, the results suggest a negative relation between expenditures (and tax revenues) and the median voter income, in favor to the model. While both public spending and tax rates exhibit negative spatial correlation (substitute goods), behavioral significance can be attached to the spatial process in public spending but not to the spatial process in the local tax rate. Originality/value The paper provides a small extension of the Meltzer and Richard model allowing for spatial interaction and contributes to the empirical debate about inequality and the size of the government presenting the results for Brazil." @default.
• W2022464046 created "2016-06-24" @default.
• W2022464046 creator A5072004038 @default.
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• W2022464046 date "2008-09-05" @default.
• W2022464046 modified "2023-10-17" @default.
• W2022464046 title "Inequality and size of government: evidence from Brazilian states" @default.
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• W2022464046 doi "https://doi.org/10.1108/01443580810895626" @default.
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