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Minimum Spending in Education and the Flypaper Effect
Economics of Education Review ( IF 1.8 ) Pub Date : 2020-06-16 , DOI: 10.1016/j.econedurev.2020.102012
Tassia Cruz , Talita Silva

Education funds in Brazil comprise local revenue and intergovernmental transfers. This study analyzes the importance of budget structure on government spending in education by estimating the effects of two characteristics of the fiscal arrangement: (i) a minimum spending rule, and (ii) a set of intergovernmental transfers. The minimum spending rule has increased educational spending only for municipalities that were below the minimum; for those above the minimum, we find a negative effect of the rule. Whereas our results indicate that the minimum rule has increased investments in low-spending municipalities, it has not affected spending in personnel for high-spending ones. We then analyze whether the sources of funds matter to government spending by estimating the flypaper effect of intergovernmental transfers using an instrumental variable method. We find a significant flypaper effect for redistribution transfers. Interestingly, we do not find flypaper effect for other types of intergovernmental transfers.



中文翻译:

最低教育支出和蝇纸效应

巴西的教育资金包括地方税收和政府间转移支付。本研究通过估算财政安排的两个特征的影响来分析预算结构对政府教育支出的重要性:(i)最低支出规则,以及(ii)一系列政府间转移支付。最低支出规则仅增加了低于最低支出的市政当局的教育支出;对于那些超过最低要求的人,我们发现该规则有负面影响。尽管我们的结果表明,最低规则增加了对低支出市政当局的投资,但并未影响高支出市政当局的人员支出。然后,我们通过使用工具变量法估算政府间转移支付的飞纸效应,来分析资金来源是否与政府支出有关。我们发现重新分配转移产生了重大的飞纸效应。有趣的是,我们没有发现其他类型的政府间转移支付的蝇纸效应。

更新日期:2020-06-16
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