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- Title
Local Fiscal Status and the Response to the Pandemic of COVID-19: Evidence for Brazilian Municipalities.
- Authors
Barros Barbosa, Rafael; dos Santos Barbosa, Gerrio; Marques Nojosa, Glauber; Tomaz de Sousa, Daniel
- Abstract
This monograph investigates the effect of local fiscal conditions on mortality during the COVID-19 pandemic. Through a difference-in-differences model, it is shown that municipalities with better fiscal conditions have lower mortality during the pandemic. To understand these results, a theoretical model is presented that suggests that the existence of local fiscal space allows mayors to expand the capacity of hospital care, thus reducing mortality during the pandemic. Subsequently, it is analyzed that municipalities in a better fiscal situation can expand the number of beds, the number of doctors and nurses in relation to municipalities in worse fiscal conditions. The favorable local fiscal situation also allows for a better-quality supply of services for the treatment of COVID-19. These results indicate that the fiscal capacity contributed to mitigate the effects of the pandemic of COVID-19, mainly by expanding the capacity of hospital care.
- Subjects
COVID-19 pandemic; MUNICIPAL government; PUBLIC goods
- Publication
Cadernos de Finanças Públicas, 2022, Vol 22, Issue 1, p2
- ISSN
1806-8944
- Publication type
Article