Uneven impacts of lockdowns on municipal revenues: Challenges in emergency financial management and local resilience
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Abstract
This paper analyses the effect of the political decision to implement lockdowns on municipal revenues, with emphasis on the heterogeneous impact of this measure at the territorial and socioeconomic levels. The method used to determine the effect of the policy on the rate of income growth was panel data analysis with two-way fixed effects. The results indicate that all municipalities were affected by the pandemic, particularly, the impact of the policy at the territorial level was greater in metropolitan municipalities and large municipalities, while at the socio-economic level, municipalities with higher poverty rates had lower income growth. Based on these results, public policy recommendations are associated with the financial management of emergencies and changes in local institutions and intergovernmental relations.
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