Do intergovernmental transfers reduce revenues collected by local government authorities (LGAs)? There is already a … revenues. Most existing studies, however, explore the fiscal implications of intergovernmental transfers in high …-income countries where sound fiscal systems are taken for granted. In this paper, I explore the impact of intergovernmental transfers …

intergovernmental transfers due to population updates. Our analysis reveals asymmetric effects of shocks: revenue gains lead to … increased spending without tax reductions, while losses in transfers prompt investments in fiscal capacity and boost tax …