Avaliação dos efeitos do gasto público no desenvolvimento dos municípios gaúchos utilizando painéis dinâmico

Abstract

In this paper, we investigate the effects of public expenditure on the development of the State of Rio Grande do Sul municipalities. The definition of development adopted has the capabilities approach as theorical reference, and the methodology used is that proposed by Hsiao et al. (2001), in wich dynamic panels with fixed effects are estimated by quasi- maximum likehood (QML). The results point to consistently positive effects of public expenditure in all the scenarios analyzed. These effects are not linear, and reach 2.7 times higher among municipalities with lower per capita spending. An extension of the sample is suggested to deepen the study of the heterogeneities of the effects related to the level of development and per capita spending of the localities. This analysis can lead to suggestions of allocative redistribution that can positively impact people's living conditions without increasing the global amount of expenditure.