Fiscal reform and federal relations: Brazilian deadlocks

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 w...

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Bibliographic Details
Published in:Brazilian Journal of Political Economy 2009-01, Vol.29 (1), p.43-61
Main Authors: Aguirre, Basilia Maria Baptista, Dias, Guilherme Leite da Silva
Format: Article
Language:English
Subjects:
Brazil
Competition
ECONOMICS
federalism
Fiscal policy
fiscal reform
POLITICAL SCIENCE
transaction costs
Online Access:Get full text
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Summary: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. Adapted from the source document.
ISSN:0101-3157
1809-4538
0101-3157
1809-4538
DOI:10.1590/S0101-31572009000100003