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Fiscal reform and federal relations: Brasilian deadlocks

Author

Listed:
  • Basilia Maria Baptista Aguirre
  • Guilherme Leite da Silva Dias

Abstract

Brazilian fiscal reform got to deadlocks because proposals tried to avoid considering federal relations. There are two main types of federal relations: the competitive and the cooperative. In both types is possible to observe coordination mechanisms. Brazilian federalism is a mixture of both types what leads to difficulties finding solutions. We argue that is more important to find mechanisms to facilitate cooperation than to discuss the qualities of any alternative fiscal structure. Fiscal reforms brings along a great deal of uncertainty. So it is important to discuss the reform timing and the compensation mechanisms before hand. JEL Classification: H70.

Suggested Citation

  • Basilia Maria Baptista Aguirre & Guilherme Leite da Silva Dias, 2009. "Fiscal reform and federal relations: Brasilian deadlocks," Brazilian Journal of Political Economy, Center of Political Economy, vol. 29(1), pages 43-61.
    • Handle: RePEc:ekm:repojs:v:29:y:2009:i:1:p:43-61:id:469
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    More about this item

    Keywords

    federalism; fiscal reform; transaction costs;
    All these keywords.

    JEL classification:

    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General

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