Institutional Collective Action and inter-municipal public consortia in Brazil

Abstract

The present study seeks to identify how the economic, demographic, fiscal, geographical, political and regional characteristics of the Brazilian municipalities affect the rational choice of government agents when opting for collective action through inter-municipal public consortia. Given that Brazil is a very diverse country, with evident regional inequalities and a Federal Constitution that has a complex regional, social and public services design, analyzing the determinants of inter-municipal cooperation requires the consideration of some variables as well as discussions that have not yet been explored in the literature regarding Institutional Collective Action. Therefore, this applied study provides new variables and discussions for the empirical literature. The results found herein suggest, among other things, that the regional dynamics of Brazilian municipalities related to the provision of public services can influence consortium action decisions. Furthermore, there is reason to believe that the oligarchic heritage of some Brazilian localities may make them less inclined to partake in horizontal collaboration activities.