This research examines the effects of inequality on long-run development within Brazil. I first exploit variation in temperature and precipitation to instrument for the local distribution of land in 1920 using a two stage least squares instrumental variables framework. My instrument is an index quantifying the suitability of local climatic conditions for plantation versus smallholder agriculture. I construct this index using information on the growing conditions of crops within certain plant taxonomies that are more biologically suited for smallholder or plantation production. I argue that this index more fully identifies the optimal environmental conditions for these two types of agricultural production, and I show that it serves as a robust predictor of local land inequality in the year 1920. IV estimates then reveal that greater inequality is associated with less local government spending on welfare and public goods over the 1995-2005 time period, as well as reductions in measures of local government quality and per-child education spending. It is also associated with lower levels of development, as measured by the local Human Development Index (HDI) for the year 2000. Inequality primarily affects the HDI through shorter life expectancies and lower incomes. I argue that the latter is consistent with the agrarian elite obstructing the transition of the local economy from agriculture to industry/services, as historically unequal municipalities contain a greater percentage of workers in the lower-wage agriculture sector, and this sector itself constitutes a larger share of local GDP.

中文翻译：

---

不平等的遗产：巴西的情况

这项研究检验了不平等对巴西长期发展的影响。我首先利用两阶段最小二乘工具变量框架，利用温度和降水的变化来测量1920年土地的局部分布。我的工具是量化本地气候条件对种植业与小农农业的适应性的指数。我使用有关某些植物分类法中作物生长状况的信息来构建此指数，这些分类法在生物学上更适合小农或人工林生产。我认为，该指数可以更全面地确定这两种农业生产的最佳环境条件，并且表明它可以作为1920年当地土地不平等的有力预测指标。IV的估算结果表明，更大的不平等与1995-2005年间地方政府在福利和公共物品上的支出减少，以及地方政府质量和儿童教育支出的减少有关。根据当地2000年人类发展指数（HDI），它还与较低的发展水平相关。不平等主要通过预期寿命较短和收入较低而对HDI产生影响。我认为后者与农业精英阻碍当地经济从农业向工业/服务业的转变相一致，因为历史上不平等的市政当局在较低工资的农业部门中占有较大比例的工人，而该部门本身构成了更大的比例占当地GDP的比重。