This article documents fiscal spillovers after an exogenous increase in the main federal transfer to Brazilian municipalities. We explore that Municipalities’ Participation Fund is distributed according to the local population and abruptly changes at some thresholds. We disentangle spillovers using bordering municipalities near different cutoffs, showing that the flypaper effect in local economies can be partially explained by bordering municipalities’ grants—roughly 20 percent. Fiscal spillovers are generally positive, except for spending in public health and sanitation for some population ranges.

中文翻译：

---

测量巴西市政当局的财政溢出

本文记录了联邦政府对巴西市政当局的主要转移支付外生增加后的财政溢出效应。我们探讨了市政参与基金是根据当地人口分配的，并在某些阈值处突然变化。我们使用临近截止点的毗邻市政当局来消除溢出效应，这表明，可以通过毗邻市政当局的拨款（大约20％）来部分解释地方经济中的蝇纸效应。除某些人群在公共卫生和卫生方面的支出外，财政外溢通常是积极的。