The present work aims to explore the existing theories about the size of the public sector and test empirically in Brazilian municipalities. The theoretical model assumes that the economy has only two sectors: the public and the private. The latter receives productivity shocks while the former...

This paper discusses the role of the state governments in the Brazilian federative system in the post-1988 Federal Constitution period, which is much characterized by cooperative and competitive mechanisms between the Union and the states and among the states themselves. The state governments...