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Tax morale, public goods, and politics: Experimental evidence from Mozambique

Abstract

Tax revenue is vital for development, but governments must balance raising revenues with maintaining political support. Partnering with a city government in Mozambique, we experimentally vary the provision of information highlighting the role of municipal tax revenues in 1) local public good provision and 2) local political autonomy. We measure how this information affects property owners’ tax morale and political support for the government. Public goods information raises tax morale, especially in areas of low baseline public good provision, but has no effect on voting. The political message increases electoral support generally, but raises tax morale only among co-partisans. These results suggest that communication about the uses of public revenue offers a politically feasible way to increase tax morale.

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Tax morale, public goods, and politics: Experimental evidence from Mozambique

Author: Sandholtz, Wayne Aaron,Vicente, Pedro C.
Publisher: Nova School of Business and Economics
Year: 2024
Source: https://run.unl.pt/bitstream/10362/180503/1/WP671.pdf
#671 | 2025
Tax mo ale, public goods, and
poli ics: Expe imen al e idence
om Mozambique
WAYNE AARON SANDHOLTZ, PEDRO C. VICENTE
Tax mo ale, public goods, and poli ics:
Expe imen al e idence om Mozambique
Wayne Aa on Sandhol z*Ped o C. Vicen e†
Decembe 7, 2024‡
Abs ac
Tax e enue is i al o de elopmen , bu go e nmen s mus balance aising e enues wi h main aining
poli ical suppo . Pa ne ing wi h a ci y go e nmen in Mozambique, we expe imen ally a y he p o-
ision o in o ma ion highligh ing he ole o municipal ax e enues in 1) local public good p o ision
and 2) local poli ical au onomy. We measu e how his in o ma ion a ec s p ope y owne s’ ax mo ale
and poli ical suppo o he go e nmen . Public goods in o ma ion aises ax mo ale, especially in a -
eas o low baseline public good p o ision, bu has no e ec on o ing. The poli ical message inc eases
elec o al suppo gene ally, bu aises ax mo ale only among co-pa isans. These esul s sugges ha
communica ion abou he uses o public e enue o e s a poli ically easible way o inc ease ax mo ale.
Keywo ds: Tax mo ale, public goods, in o ma ion, poli ical economy, expe imen s, Mozambique
JEL Codes: O12, H00, P00, C93
*No a School o Business and Economics, CESi o, IZA, and NOVAFRICA.
†No a School o Business and Economics, BREAD, CEPR, and NOVAFRICA.
‡Co esponding au ho : Wayne Aa on Sandhol z, No a School o Business and Economics, Uni e sidade NOVA de Lisboa,
Campus de Ca ca elos, 2775-405 Ca ca elos, Po ugal. E-mail: wayne.sandhol z@no asbe.p . Ca olina G ande p o ided s ella
esea ch assis ance. IRB app o al was ecei ed om No aSBE (p o ocol #202241). A andomized con olled ial egis y en y, ID #
AEARCTR-0010628, is a ailable a : h ps://www.socialscience egis y.o g/ ials/10628. The e alua ion was suppo ed by IGC g an
MOZ-22067. This wo k was unded by Fundação pa a a Ciência e a Tecnologia (UIDB/00124/2020, UIDP/00124/2020 and Social
Sciences - Da aLab PINFRA/22209/2016), POR Lisboa and POR No e (Social Sciences Da aLab, PINFRA/22209/2016).
1 In oduc ion
Raising ax e enue is i al o de elopmen , bu e o s by go e nmen s in low-income coun ies o im-
p o e ax collec ion a e cons ained by low s a e capaci y and poli ical opposi ion (Besley & Pe sson,2013,
2014). The esou ces necessa y o e ec i e en o cemen and c edible de e ence a e, pa adoxically, o en
ou o each o cash-s apped go e nmen s (Pome anz & Vila-Belda,2019;Besley & Pe sson,2009). E en
whe e i is iscally easible, amping up en o cemen can p o oke poli ical esis ance which ulne able
go e nmen s p e e o a oid (Bi d e al.,2008;Fues e al.,2024;Fo emny & Riedel,2014). Low-cos ,
poli ically easible e enue in e en ions a e he e o e o pa icula alue.
Tax mo ale — ci izens’ willingness o pay axes olun a ily — ep esen s an impo an ma gin o
inc easing e enues in such con ex s. As ypically unde s ood, ax mo ale depends on he ecip oci y
inhe en in he social con ac , by which he go e nmen uses ci izens’ con ibu ions o p o ide public
goods (Lu me & Singhal,2014;Locke,1689).1In heo y, in o ming ci izens abou he quali y o public
goods could aise ax mo ale among hose who upda e hei belie s posi i ely (Besley,2020). Recip oci y
also depends on poli ical legi imacy (Le i,1988). In o ming ci izens abou he necessi y o ax e enues
o achie ing poli ical objec i es could aise ax mo ale among hose who sha e he objec i es (Cullen
e al.,2021). This may be pa icula ly ele an when poli ical ic ions exis be ween local and cen al
go e nmen s (B ollo & Nannicini,2012).
In his pape , we expe imen ally s udy how in o ma ion abou public good p o ision and/o local
poli ical au onomy a ec s ax mo ale and poli ical suppo among p ope y owne s in he ci y o Queli-
mane, Mozambique. Quelimane is emblema ic o he challenges aced by local ax-collec ing ju isdic ions
a ound he wo ld. I s popula ion is abou 500,000, wi h apid popula ion g ow h pu ing p essu e on he
public goods unde i s ju isdic ion ( oads, sani a ion, and d ainage). Au ho i y o collec p ope y axes is
decen alized, bu he municipali y has only a weak capaci y o en o cemen . This scena io is ypical in
he con inen : o e 60% o A ica’s u ban popula ion li es in agglome a ions o less han a million inhab-
i an s (Uni ed Na ions,2018). These go e nmen s usually lack he kind o adminis a i e ax da a used in
s udies o la ge and be e - esou ced ju isdic ions (Be ge on e al.,2024;Almunia e al.,2024). A ica’s
u ban popula ion is p ojec ed o double by 2050, inc easing p essu e on go e nmen s like Quelimane’s
o imp o e in as uc u e and se ices (Saghi & San o o,2018). The poli ics o iscal decen aliza ion in
Quelimane also esona e in many local ju isdic ions wo ldwide whe e dependence on ede al ans e s
1This basic concep o social con ac is a iously deno ed in he li e a u e wi h he closely- ela ed e ms “ ecip oci y,” “ iscal
exchange,” and “bene i -based axa ion.”
1
limi s iscal and poli ical au onomy.
In ou expe imen , all pa icipan s we e p o ided wi h in o ma ion abou p ope y ax a es and he
municipal budge p io o he c oss- andomized p esen a ion o wo in o ma ion ea men s. The “public
goods” ea men p esen ed he idea o he social con ac as he ecip ocal ela ionship by which ci izens
pay axes in exchange o public se ices om he s a e. I also included a lis o ecen in as uc u e
buil by he municipal go e nmen — including oads epai ed, d ainage di ches dug, and sani a ion
imp o emen s — wi h accompanying pho os o he wo ks. The “local au onomy” ea men highligh ed
he municipali y’s budge dependence on he cen al go e nmen and he cons ain s his placed on i s
poli ical and iscal au onomy. The message d ew on language used in poli ical speeches by he incumben
opposi ion-pa y mayo , and included pho os o him in speeches and allies o highligh he pa isan
na u e o he message. In addi ion o measu ing he di ec e ec o each ea men , we also examine hei
in e ac ion; eal-wo ld go e nmen s emi many communica ions, bu ew s udies examine how di e en
messages migh enhance o in e e e wi h each o he .
Responden s cons i u ed a ep esen a i e sample o o e 900 p ope y owne s in he ci y. Because
he municipali y’s exis ing ax olls (and adminis a i e da a) include only a small numbe o high- alue
p ope ies, ga he ing ep esen a i e da a is necessa y o in o ming e o s o b oaden he ax base. We
i s collec ed baseline da a on esponden s’ cha ac e is ics, a i udes, and pas ax paymen s and poli ical
beha io . Whe e adminis a i e da a a e a ailable, hey co obo a e hese su ey measu es: esponden s
in he ew neighbo hoods p e iously a ge ed by he ax au ho i y a e wice as likely o epo ha ing paid
p ope y axes, and h ee imes mo e likely o epo ha ing had hei p ope ies assessed. To educe he
isk o expe imen e demand e ec s, we measu e ax mo ale wi h su ey ques ions as well as a beha io al
esponse ou come: cos ly con ibu ions o a eal-s akes public goods game. We also include a se ies o
ques ions aimed di ec ly a elici ing expe imen e demand e ec s, inding no e ec o any ea men on
hese measu es.
We show ha in o ma ion abou public good p o ision aised ax mo ale, as measu ed by bo h su ey
esponses and eal paymen s in a public goods game (Table 2). In he con ol condi ion, 62% o espon-
den s said i was “likely” o “ e y likely” hey would pay he p ope y ax i assesso s came o e alua e
hei p ope y. The public goods message aised his by 8.5 pe cen age poin s (14%). In he public goods
game, 32% o con ol g oup pa icipan s chose o con ibu e a posi i e amoun o he public good by
making a mobile money ans e . The public goods ea men aised his by 9.4 pe cen age poin s, a 29%
inc ease. This e ec was en i ely concen a ed among esponden s wi h low baseline expe ience o public
2
good p o ision, sugges ing he e ec is d i en by esponden s who upda e based on he in o ma ion.
The local au onomy ea men had no a e age e ec on ax mo ale on i s own, and i a enua ed
he posi i e e ec o he public goods ea men when hey we e combined. In ac , measu es o ax
mo ale o esponden s who hea d bo h messages we e no s a is ically di e en om he con ol g oup.
The excep ion was o s ong pa isans o he opposi ion pa y which go e ns he ci y: among hese
esponden s, he local au onomy message inc eased con ibu ions, bo h when p esen ed alone and when
combined wi h he public goods message. Taken oge he , hese esul s sugges ha axpaye s espond
posi i ely o in o ma ion abou public good p o ision, bu become disillusioned when he message o
go e nmen e ec i eness is mixed wi h an o e ly poli ical message wi h which hey do no ag ee.
Tu ning o poli ical ou comes, we ind ha he public goods ea men inc eased sa is ac ion wi h
go e nmen , bu only he local au onomy ea men changed o ing choices. The public goods message
inc eased esponden s’ epo ed sa is ac ion wi h bo h he municipal and na ional go e nmen s, bu had
no signi ican e ec on people’s o e choice in a mock ballo exe cise. Meanwhile, he local au onomy mes-
sage aised he o e sha e o opposi ion pa ies a a ious le els o go e nmen . This sugges s ha people
unde s ood he message, bu esponded di ec ly h ough poli ical a i udes a he han ax a i udes.
Ou pape con ibu es o exis ing wo k on how in o ma ion abou public se ice p o ision in luences
a ious aspec s o ci izens’ ela ionship wi h he s a e. The e idence on p omp ing axpaye s in low-
income coun ies o hink in gene al e ms abou he social con ac is mixed: posi i e e ec s on ax
compliance in Tanzania (Collin e al.,2021), wi h null e ec s in Rwanda and Uganda (Mascagni & Nell,
2022;Cohen,2024).2Ou pape shows ha p o iding speci ic in o ma ion abou ecen ly p o ided public
goods can aise ax mo ale, o e ing an impo an low-cos ool o poo ju isdic ions o inc ease e enues.
We also con ibu e o he li e a u e showing how public good in o ma ion a ec s ci izens’ poli ical
a i udes and pe cep ions o go e nmen . In a s udy simila o ou s, Acemoglu e al. (2020) show using
a lab expe imen ha in o ma ion abou imp o emen s o cou s in Pakis an aised people’s willingness
o use hem. O he wo k documen s elec o al e ec s o in o ma ion abou public se ice quali y in I aly,
Chile, and B azil (Kendall e al.,2015;Cox e al.,2024;Dias & Fe az,2020).3Ou pape adds o his
b oad body o esea ch by examining ax mo ale and poli ical a i udes wi hin he same con ex , s udying
di ec ly how messages abou public goods and poli ics in e ac wi h one ano he on ou comes ela ed
2The li e a u e on gene al “social con ac ” in o ma ion messages in high- and middle-income coun ies is simila ly mixed:
posi i e e ec s in he UK and No way (Hallswo h e al.,2017;Bo e al.,2019), null e ec s in A gen ina, Belgium, he Uni ed S a es,
and U uguay (Cas o & Sca ascini,2015;De Ne e e al.,2021;Blumen hal e al.,2001;Be golo e al.,2023).
3Ci izen a i udes can be di icul o mo e, howe e : Khan e al. (2021) ind no e ec o in o ma ion on pas s a e e ec i eness in
Pakis an on ci izens’ suppo o policy, pe cep ions o s a e capaci y, o us in he s a e.
3

o each. Despi e he na u al ension be ween asking ci izens o mo e axes and hei elec o al suppo
(P icha d,2018), we a e no awa e o exis ing s udies which examine e ec s on bo h ou comes in he same
con ex .4
We build on he wo k ela ing ax mo ale o decen aliza ion and iscal ede alism. Local au onomy
ma e s o g ow h: Enikolopo & Zhu a skaya (2007) ind ha he ou comes o iscal decen aliza ion
de e io a e when cen al go e nmen s domina e local go e nmen s, and A zaghi & Hende son (2005)
show a posi i e c oss-coun y co ela ion be ween g ow h and iscal decen aliza ion. Recen empi ical
wo k also shows ha public se ices imp o e when unded by local axes (Gadenne,2017;Bianchi e al.,
2023). To gle e al. (2010) ind a posi i e co ela ion be ween local au onomy and ax mo ale speci ically,
and Gü h e al. (2005) ind a posi i e e ec o decen aliza ion on ax mo ale in he lab. Rela ed esea ch
unde sco es ha people a e happie o pay axes when hey ag ee wi h wha he e enue is used o
(Cullen e al.,2021;Alm e al.,1993;Giaccobasso e al.,2024). All o his e idence, howe e , comes
om high- and middle-income coun ies, whe e ax e enues as a sha e o GDP a e al eady ela i ely
high. The belie ha appeals o iscal independence can aise ax mo ale has been documen ed among
policymake s in he de eloping wo ld (Lu me & Singhal,2014). Ou pape p o ides empi ical e idence
o his phenomenon, a leas among pa isans o he local go e nmen .
Finally, we add o he body o esea ch on aising e enues in con ex s o low s a e capaci y, summa-
ized in a ecen e iew by Okunogbe & Tou ek (2024). E ec i e s a egies ha e included inco po a ing
new echnology (Okunogbe & San o o,2023), enlis ing local chie s and inc easing public o e sigh in he
DRC (Balán e al.,2022;Henn e al.,2024), and le e aging ading ne wo ks in Uganda (Almunia e al.,
2023). Nea ly all exis ing wo k on ax compliance in low-income coun ies in ol es he e enue au ho i ies
o na ions o la ge ci ies o o e a million people (Almunia e al.,2024;Mon enb uck,2023;Balán e al.,
2022). Howe e , mos A icans (and mos o he wo ld) li e in smalle ci ies o unde a million people
(Uni ed Na ions,2018). Because hese ju isdic ions lack sophis ica ed p ope y ax da a sys ems, almos
no exis ing economics li e a u e s udies hem — and he lessons om highe -capaci y ju isdic ions may
no ca y o e (Allco ,2015). We show ha in o ma ion on public goods and local au onomy can aise
ax mo ale and poli ical suppo , o e ing a low-cos way o capaci y-cons ained go e nmen s o expand
e enue collec ion and b oaden he ax base.
4A ela ed body o wo k examines how public goods hemsel es a ec bo h ax mo ale and o ing. Va ious kind o public
goods ha e been shown o inc ease ax compliance (Ca illo e al.,2017;Blimpo e al.,2018;K esch e al.,2023;Gonzalez-Na a o &
Quin ana-Domeque,2015;K ause,2020); B ockmeye e al. (2024)’s null esul is an impo an excep ion. Simila ly, a ious s udies
show ha public goods and se ices win o es (Boudo -Reddy & Bu le ,2024;Hue -Vaughn,2023;Le -Ya e e al.,2023;Biasi &
Sandhol z,2024), hough o he s ind null o nega i e elec o al e ec s (Goyal,2023;Ga ias e al.,2021;Bueno e al.,2023;Sandhol z,
2023). We show ha public goods in o ma ion alone can be su icien o a ec bo h ax mo ale and poli ical a i udes.
4
2 Con ex
The ci y o Quelimane in Mozambique is ypical o many u ban con ex s in A ica in a ious ways. I s
popula ion makes i compa able o he sub-million- esiden ci ies home o he majo i y o u ban dwelle s
in A ica and he wo ld (Uni ed Na ions,2018). Like many ci ies in de eloping coun ies, Quelimane
is g owing apidly: i has mo e han ipled in popula ion since 2000, placing s ess on public se ices
(Uni ed Na ions, Depa men o Economic and Social A ai s, Popula ion Di ision,2018). The municipal
go e nmen ’s ju isdic ion ex ends o e local oad cons uc ion, sani a ion, and d ainage sys ems — a
c ucial de ense agains equen looding caused by opical cyclones (Lee e s,2023).
Poli ically, Mozambique is classi ied as an “elec o al au oc acy,” along wi h coun ies ep esen ing
43% o he wo ld’s popula ion: ci izens o e in mul i-pa y elec ions, bu hey lack many sa egua ds o
ensu e hey a e ee and ai .5In p ac ice, his means ha he uling pa y FRELIMO domina es elec ions
a he na ional le el, bu ha local elec ions ha e been success ully con es ed by opposi ion pa ies in a
hand ul o ju isdic ions. A he ime o ou s udy, he mayo o Quelimane was om RENAMO ( he la ges
opposi ion pa y), ha ing i s won he municipal elec ion in 2011.6
The as majo i y o he ci y’s budge – a ound 70% – comes om ans e s om he cen al go -
e nmen , c ea ing a dependency wi h impo an poli ical ami ica ions gi en ha he ci y is go e ned by
an opposi ion pa y. Tax e enues make up less han 5% o he ci y’s budge , wi h p ope y axes con-
s i u ing he majo i y o hese. P ope y owne s in Mozambique a e subjec o a Municipal P ope y Tax
(Impos o P edial Au á quico o IPRA), equi alen o 0.4% o he assessed alue o he p ope y o esiden ial
p ope ies and 0.7% o comme cial p ope ies.
The municipal go e nmen ’s capaci y o en o cemen is minimal. In 2020, he mos ecen ull yea
o which da a a e a ailable, he Finance Depa men o he municipali y ecei ed p ope y ax paymen s
om 515 con ibu o s, o a o al o 6.8 million me icais (USD 105,079). Figu e A.1 in he Appendix shows
he sou ces o Quelimane’s e enues o 2015-2020.
5This classi ica ion comes om he V-Dem (Va ie ies o Democ acy) Ins i u e’s “Regimes o he Wo ld (RoW)” classi ica ion, which
includes 4 ca ego ies: closed au oc acy, elec o al au oc acy, elec o al democ acy, libe al democ acy (Coppedge e al.,2024). Simila ly,
Mozambique is a ed as “pa ly ee” by F eedom House, and an “Open Anoc acy” in he ca ego iza ion o Poli y IV (F eedom
House,2023;Ma shall e al.,2023).
6The cu en mayo was i s elec ed in 2011 as a candida e o he MDM, ano he (smalle ) opposi ion pa y, bu joined RENAMO
ahead o he 2018 municipal elec ion cycle.
5
3 Da a and Design
3.1 Sampling
To build e idence on municipal ax mo ale in Quelimane, we su eyed a ep esen a i e sample o p ope y
owne s. The ci y is di ided in o 5 Adminis a i e Pos s (Pos os Adminis a i os), which a e u he subdi-
ided in o 51 neighbo hoods (bai os), which in u n a e u he subdi ided in o 558 blocks (qua ei ões).
We i s selec ed a andom sample o blocks om which o sample esponden s. We hen placed a leas
ou andomly chosen poin s wi hin each block’s bounda ies o indica e which p ope ies we e o be su -
eyed. When a poin was no on an iden i iable p ope y, o on a p ope y whe e no owne was a ailable
o in e iew, enume a o s ollowed a p e-codi ied andom walk p ocedu e un il a i ing a a p ope y
whe e an eligible esponden was a ailable o in e iew. The inal analysis sample, ep esen a i e o he
p ope ies in he ci y, consis s o 922 p ope ies in 214 blocks. The sampled esponden s we e su eyed
o e he cou se o abou wo weeks in No embe /Decembe o 2022. The su ey ook abou one hou .
3.2 Compa ing su ey and adminis a i e da a
Al hough a ailable adminis a i e da a in Quelimane a e minimal, hey can be used o alida e su ey
esponses. In 2020, p ope y axpaye s came om only 22 o he ci y’s 51 neighbo hoods, hough only
44% o eco ds can be mapped due o incomple e add ess da a. Among hese axed p ope ies, 82%
o e enue (and 66% o con ibu o s) came om jus i e neighbo hoods in he down own a ea. (By
con as , jus 13% o ou ep esen a i e sample eside in hese high- ax neighbo hoods.) Acco dingly, ou
esponden s in hese neighbo hoods a e wice as likely o epo ha ing paid IPRA in he las yea , and
h ee imes as likely o epo ha ing had hei p ope y assessed by municipali y echnicians.
Figu e 1maps he sampled blocks and p ope ies, as well as he in ensi y o ax collec ion by neigh-
bo hood.
6
Figu e 1: Su eyed p ope ies
21-70
11-20
1-10
0
P ope ies in sample (919)
Blocks in sample (214)
O he blocks (344)
Admin da a: N. axpaye s in neighbo hood
Su ey da a
Black do s show he loca ions o su eyed p ope ies supe imposed on he ci y o Quelimane, Mozambique. (Th ee espon-
den s who consen ed o pa icipa e bu no o ha e hei loca ion eco ded a e excluded om he map.) G ay blocks a e hose
andomly selec ed o ha e p ope ies sampled; unsampled blocks a e whi e. The 51 neighbo hoods in he ci y a e shaded
acco ding o he numbe o iden i iable indi idual con ibu o s hey con ain in 2020 adminis a i e da a om he Depa men
o Finances.
3.3 Su ey
Ou su ey p o ides ep esen a i e da a on p ope y owne s, a a e hing in medium-sized ju isdic ions
like Quelimane. In addi ion o basic demog aphic cha ac e is ics, he su ey measu ed esponden s’
belie s and a i udes abou he ax sys em – o example, whe he and when hey had been asked o pay
p ope y axes, whe he hey hough a es we e ai , how well hey belie ed he sys em wo ked, and how
many o hei neighbo s and ellow esiden s hey hough we e paying axes. We also included a ba e y
o ques ions abou esponden s’ us in he go e nmen (mos ly d awing on s anda d wo ding om he
A oba ome e ), as well as a se o ques ions abou hei expe ience wi h and knowledge abou public
se ices ela ing o he social con ac . Table 1p esen s summa y s a is ics.
7
4 Resul s
4.1 E ec s on ax mo ale
Ou i s esul is ha in o ma ion on public good p o ision aised esponden s’ ax mo ale. Table 2shows
es ima es o he causal e ec o he in o ma ion ea men s on su ey esponses and public goods game
con ibu ions. The public goods message inc eased he likelihood esponden s epo ed being “likely”
o “ e y likely” o pay he p ope y ax i assesso s came o hei p ope y. F om a con ol g oup mean
o 61.8%, his message inc eased he p opo ion by 8.5 pe cen age poin s (pp), o 13.8%.10 Con i ming
hese posi i e e ec s on su ey measu es, ea ed esponden s we e also 9.4 pp mo e likely o con ibu e
a posi i e amoun in he public goods game – an inc ease o 29.0% o a base o 32.4%. The e ec o his
message on he o al amoun esponden s con ibu ed was la ge and posi i e (2.3 me icais om a base o
13.4 in he con ol g oup) bu no s a is ically signi ican .
We also show ha he local au onomy message alone had no signi ican e ec on ei he measu e o ax
mo ale. Mo eo e , i appea s o ha e coun e ac ed he e ec o he public goods message: he in e ac ion
e ec o he wo ea men s is consis en ly nega i e and la ge. Al hough his coe icien i sel is no
s a is ically signi ican , he g oup which ecei ed bo h he public goods and local au onomy messages is
s a is ically indis inguishable om he con ol g oup on hese ax mo ale ou come measu es.
10Figu e A.2 in he appendix shows ha he public goods ea men p oduced a igh wa d shi in he dis ibu ion o esponses o
his ques ion.
14

Table 2: E ec s o ea men on ax paymen in en ions and public goods con ibu ions
Likely o pay
p ope y ax
Public goods game:
con ibu ed
Public goods game:
amoun (me icais)
Public goods 0.085∗∗ 0.094∗∗ 2.311
(0.041) (0.039) (2.114)
Local au onomy 0.029 0.025 0.289
(0.041) (0.039) (2.110)
Public goods ×Local au onomy -0.090 -0.059 -1.998
(0.058) (0.056) (2.985)
N 922 922 922
Mean (con ol g oup) 0.618 0.324 13.400
p- al: T1=T2 0.174 0.080 0.335
p- al: T1 + T2 + T1 ×T2 = 0 0.571 0.129 0.776
Coe icien s om he eg ession speci ied in Equa ion 1, wi h s anda d e o s shown in pa en heses. ’Likely o pay
p ope y ax’ indica es ha he esponden answe ed ’Ve y likely’ o ’Likely’ o he ques ion ’I assesso s came o
e alua e you p ope y, how likely is i ha you would pay you p ope y ax?’ ’Public goods game: con ibu ed’
indica es ha he esponden con ibu ed a posi i e amoun in he public goods game. ’Public goods game amoun :
me icais’ deno es he amoun o me icais he esponden con ibu ed in he public goods game. All eg essions
include block ixed e ec s. * p<0.10, ** p<0.05, *** p<0.01
4.1.1 He e ogenei y by baseline public good p o ision and pa isan a ilia ion
Because people’s eac ion o in o ma ion likely depends on how i in e ac s wi h hei exis ing belie s, we
nex es whe he he in o ma ion ea men s a ec s esponden s he e ogeneously along hese dimensions.
Ci izens wi h less di ec expe ience o municipal public good p o ision may be mo e likely o upda e
based on public good in o ma ion. Ou su ey asked esponden s abou he equency o p o ision o
he h ee main public se ices wi hin he municipali y’s pu iew: ga bage collec ion, d ainage, and oad
cons uc ion/main enance.11 We build dummies o whe he esponden s answe ed “ne e ” o each o
hese a iables, hen c ea e an index based on he i s ac o o he co ela ion ma ix o hese dummies
(pai wise co ela ions be ween hese a iables a e qui e high, anging be ween .42 and .65). We hen spli
he sample in o “high” and “low” baseline public good p o ision a he median o his index. We eg ess
he dummy o con ibu ing in he public goods game on he ull se o ea men condi ion dummies
(public goods, local au onomy, o bo h) — sepa a ely o esponden s wi h high and low baseline public
goods.
Figu e 2a shows ha he posi i e e ec o he public good message on ax mo ale is concen a ed
among esponden s who epo low public good p o ision om hei pe sonal expe ience a baseline.
11The wo ding o he ques ion was “When was he las ime someone om he go e nmen [collec ed ash on you s ee ; wo ked
on building o cleaning/ epai ing he d ainage di ches on you s ee ; wo ked on building o epai ing he access oads o you
home]?” Op ions we e “One week ago o less,” “One mon h ago,” “One yea ago,” “Se e al yea s ago,” “Ne e ,” “Don’ know.”
15
This is consis en wi h axpaye s upda ing hei p io s in esponse o new in o ma ion abou public good
p o ision.
The local au onomy ea men may be expec ed o be pa icula ly pe suasi e o ci izens whose own
poli ical belie s p edispose hem o sha e he goals o he opposi ion pa y which go e ns he municipali y
(RENAMO).12 We iden i y as “RENAMO pa isans” he esponden s who epo ha ing o ed o REN-
AMO pa y candida es in bo h he 2018 municipal elec ions and he 2019 na ional elec ions. We eg ess
he dummy o con ibu ing in he public goods game on he ull se o ea men condi ion indica o s —
sepa a ely o RENAMO pa isans and all o he esponden s.
Figu e 2b shows ha , among RENAMO pa isans, he e ec o he public goods message is e en
la ge han o he gene al popula ion, and ha he e ec o he local au onomy message is posi i e and
signi ican as well (p<0.1). Fu he mo e, he local au onomy message appea s no o ha e diminished
he e ec o he public goods message as in he o e all sample. This is consis en wi h he local au onomy
message being e ec i e o hose whose poli ical goals incline hem owa d g ea e empowe men o he
municipal go e nmen .
These esul s sugges ha bo h in o ma ion ea men s’ e ec s we e concen a ed among hose whose
p io belie s p edisposed hem o be a ec ed by he in o ma ion.
4.2 E ec s on poli ics
Table 3shows he ea men e ec s on poli ical ou comes. The public goods message aised esponden s’
le el o sa is ac ion wi h bo h he municipal go e nmen o Quelimane and he na ional go e nmen o
Mozambique, by 7.7 and 9.9 pp espec i ely. The ac ha he in o ma ion inc eased sa is ac ion wi h
bo h le els o go e nmen is su p ising, gi en ha he municipal go e nmen which was esponsible
is con olled by he main opposi ion pa y (RENAMO) while he na ional go e nmen is con olled by
FRELIMO. This may e lec he uling pa y’s adep ness a claiming c edi o public goods (Ake e al.,
2017;C uz & Schneide ,2017). I may also indica e con usion abou a ibu ion o public goods o he
co ec le el o go e nmen , which pe haps helps explain he non-e ec o he local au onomy message
on ax mo ale excep among co e RENAMO suppo e s. As wi h he ax mo ale ou comes, he local
au onomy message had no impac on go e nmen sa is ac ion i s own, and again nega ed he posi i e
e ec o he public goods message.
12E idence om he Uni ed S a es sugges s ha indi idual ci izens’ ax mo ale inc eases when a p esiden om hei own pa y
is in powe (Cullen e al.,2021).
16
Figu e 2: E ec s on con ibu ion o public goods (game)
-.2
0
.2
.4
.6
Public
Goods
Local
Au onomy
Bo h
Low public goods (415)
High public goods (423)
(a) By baseline public good p o ision
-.2
0
.2
.4
.6
Public
Goods
Local
Au onomy
Bo h
RENAMO pa isans (107)
O he s (725)
(b) By pa isanship
Figu e 2a shows coe icien s and co esponding con idence in e als o 95% and 90% om eg essing an indica o o
whe he esponden s con ibu ed o he public goods game on ea men g oup dummies, sepa a ely o esponden s
sco ing below s. abo e he median on an index o baseline public good p o ision. Figu e 2b shows coe icien s and
co esponding con idence in e als om he same eg ession, sepa a ely by whe he esponden s epo ha ing o ed
o RENAMO in he 2018 municipal and 2019 na ional elec ions, o no . In bo h panels, dummies a e included o
“public goods,” “local au onomy,” and “bo h” a he han plo ing he in e ac ion e m; his is o acili a e compa ing
ou comes o each g oup ela i e o he con ol g oup. Ci y block ixed e ec s a e included in all eg essions. The
co ela ion be ween he abo e-median baseline public goods dummy and he RENAMO o e dummy is 0.015.
17
We no e howe e ha esponden s’ own s a ed o ing in en ions as measu ed h ough he mock ballo s
we e less esponsi e o he public goods message han o he local au onomy message. Local au onomy
mo ed hem owa ds RENAMO o MDM ( he na ional-le el opposi ion pa ies), no FRELIMO. No e ha
in he con ol g oup, as expec ed, suppo o he opposi ion is highe a he municipal le el (54%) han in
he p o incial o na ional le el (47% and 44%, espec i ely). The local au onomy message inc eased sup-
po o he opposi ion in bo h p o incial and na ional go e nmen s o he le el enjoyed by he municipal
go e nmen . Suppo o he uling pa y ell commensu a ely (see Table A.4). While hese e ec s a e only
signi ican o he local au onomy message, poin es ima es a e also posi i e o he public goods message,
and no signi ican ly di e en om he local au onomy coe icien s. Table A.3 shows simila esul s on
o ing in en ions as measu ed by su ey esponses.
Table 3: E ec s o ea men on poli ical ou comes
Sa is ac ion wi h
go e nmen
Vo e o
RENAMO o MDM
Municipal Na ional Municipal P o incial Na ional
Public goods 0.077∗∗ 0.099∗∗ 0.029 0.061 0.062
(0.038) (0.043) (0.045) (0.046) (0.046)
Local au onomy 0.001 -0.003 0.047 0.080∗0.112∗∗
(0.038) (0.043) (0.045) (0.046) (0.046)
Public goods ×Local au onomy -0.080 -0.125∗∗ -0.045 -0.084 -0.096
(0.054) (0.061) (0.063) (0.065) (0.064)
N 922 922 863 856 858
Mean (con ol g oup) 0.707 0.462 0.543 0.466 0.440
p- al: T1=T2 0.043 0.018 0.697 0.675 0.265
p- al: T1 + T2 + T1 ×T2 = 0 0.957 0.515 0.491 0.217 0.088
Coe icien s om he eg ession speci ied in Equa ion 1, wi h s anda d e o s shown in pa en heses. ’Sa is ac ion
wi h go e nmen ’ indica es ha he esponden answe ed ’Ve y sa is ied’ o ’Sa is ied’ o he ques ion ’In gene al, a e
you sa is ied wi h poli ical go e nance in [ he municipali y o Quelimane / Mozambique]?’ ’Vo e o RENAMO o
MDM’ indica es ha he esponden submi ed a ballo on which hey checked he box nex o ’RENAMO’ o ’MDM’
o he s a ed le el o go e nmen (de ined o esponden s who submi ed any ballo ). All eg essions include block
ixed e ec s. * p<0.10, ** p<0.05, *** p<0.01
4.3 Tes ing o expe imen e demand e ec s
To es whe he ou esul s a e d i en by expe imen e demand e ec s, we included ques ions in he
su ey which asked esponden s di ec ly i hey ag eed wi h he hypo heses we we e es ing. A e
p esen ing he ea men in o ma ion, we asked esponden s whe he he in o ma ion p o ided was likely
o mo i a e hemsel es o hei neighbo s o pay p ope y axes. I esponden s’ answe s we e d i en
18
by hei pe cep ions o expe imen e demand, we would expec ea men o ha e la ge e ec s on hese
ques ions. In ac , no ea men had any e ec on any o hese measu es (see Table A.5).
5 Conclusion
Inc easing municipal e enues in he de eloping wo ld is o i al impo ance o imp o ing he quali y
o public goods and se ices, and ul ima ely o boos ing economic g ow h. Bu go e nmen s ace bo h
esou ce and poli ical cons ain s o s eng hening en o cemen , poin ing o he necessi y o inding ways
o aise olun a y ax compliance ( ax mo ale). This need is especially p essing o smalle ju isdic ions
which lack sophis ica ed da a collec ion in as uc u e.
In his pape , we show ha communica ion highligh ing he local go e nmen ’s exis ing e o s a
p o iding public goods can engende g ea e p ope y ax mo ale among p ope y owne s, especially
hose o whom he in o ma ion upda ed belie s gi en hei own poo expe ience o public good p o ision.
The public goods communica ion aises sa is ac ion wi h go e nmen , and may inc ease pa isan suppo ,
hough hese es ima es a e noisy. Meanwhile, highligh ing local poli ical au onomy inc eases suppo o
he opposi ion pa y bu only aises ax mo ale o s ong co-pa isans, e e sing he gains o he public
goods message o e e yone else.
These esul s ca y impo an policy implica ions o go e nmen s seeking o aise e enue wi hou
losing poli ical suppo . E ec i e communica ion abou he go e nmen ’s public goods successes o e s a
ela i ely low-cos way o p o ide a posi i e shock o people’s pe cep ions o he social con ac . Ou e-
sul s abou he he e ogenei y o e ec s by ci izens’ p io expe ience o public goods sugges ha a ge ing
in o ma ion o hose mos likely o upda e hei belie s could make hese in e en ions e en mo e cos -
e ec i e. Ideally, his posi i e shock could lead o a i uous cycle, as go e nmen s use inc eased e enues
o imp o e he quali y o public goods and se ices, which in u n u he boos s ci izens’ ax mo ale. To-
ge he , hese esul s hin ha incumben poli icians may bene i om sepa a ing messages abou he social
con ac and poli ics: while public goods ma ke ing can be used o boos ing ax adhe ence in imes o
policy-making, unde sco ing poli ical au onomy should p obably be le o he poli ical campaign pe iods.
Poli ical communica ion is a .
19

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23
A.4 E ec s on he dis ibu ion o likelihood o pay
Figu e A.2: His og am o esponses o paymen likelihood ques ion, by ea men
0
.1
.2
.3
.4
.5
F ac ion
Don' know Re use No a
all likely
No e y
likely
Likely Ve y likely
Con ol
Public goods
Answe s o he ques ion “I assesso s came o e alua e you p ope y, how likely is i ha you would pay you p ope y
ax?” o esponden s assigned o con ol and public goods ea men a ms.
30

A.5 E ec s on o he elec o al measu es
Table A.3: E ec s on epo ed o ing ou comes
Vo e o
FRELIMO
Vo e o
RENAMO o MDM
Repo
o ing
in en ion
Municipal Na ional Municipal Na ional Municipal Na ional
Public goods -0.003 -0.043 0.028 0.066 -0.011 -0.031
(0.047) (0.047) (0.047) (0.047) (0.025) (0.026)
Local au onomy -0.046 -0.097∗∗ 0.036 0.084∗-0.011 -0.010
(0.046) (0.047) (0.047) (0.047) (0.025) (0.026)
Public goods ×Local au onomy 0.047 0.071 -0.032 -0.058 -0.027 0.007
(0.066) (0.067) (0.067) (0.067) (0.036) (0.037)
N 830 822 830 822 922 922
Mean (con ol g oup) 0.413 0.527 0.549 0.439 0.920 0.916
p- al: T1=T2 0.347 0.245 0.868 0.701 0.995 0.405
p- al: T1 + T2 + T1 ×T2 = 0 0.968 0.146 0.511 0.054 0.052 0.184
Coe icien s om he eg ession speci ied in Equa ion 1, wi h s anda d e o s shown in pa en heses. ’Vo e o FRELIMO’ indica es
ha he esponden answe ed ’FRELIMO’ o he ques ion ’I he municipal elec ions we e omo ow, which pa y would you o e
o ?’ (de ined o esponden s who did no answe Don’ Know o Re use). ’Vo e o RENAMO o MDM’ indica es ha he
esponden answe ed ’RENAMO’ o ’MDM’ o his ques ion, wi h he same es ic ion. ’Repo o ing in en ion’ indica es ha
he esponden ga e a esponse o his ques ion o he han ’Don’ know’ o ’Re use.’ All eg essions include block ixed e ec s. *
p<0.10, ** p<0.05, *** p<0.01
31
Table A.4: E ec s on o he ballo ou comes
Vo e o FRELIMO Submi ballo
Municipal P o incial Na ional Municipal P o incial Na ional
Public goods 0.004 -0.022 -0.015 0.004 0.011 0.011
(0.045) (0.046) (0.046) (0.021) (0.022) (0.022)
Local au onomy -0.039 -0.074 -0.090∗0.004 0.012 0.002
(0.044) (0.046) (0.046) (0.021) (0.022) (0.022)
Public goods ×Local au onomy 0.023 0.062 0.056 0.000 -0.009 -0.004
(0.063) (0.065) (0.065) (0.030) (0.031) (0.031)
N 863 856 858 922 922 922
Mean (con ol g oup) 0.400 0.471 0.488 0.933 0.924 0.929
p- al: T1=T2 0.334 0.253 0.103 0.998 0.983 0.682
p- al: T1 + T2 + T1 ×T2 = 0 0.796 0.474 0.295 0.714 0.530 0.700
Coe icien s om he eg ession speci ied in Equa ion 1, wi h s anda d e o s shown in pa en heses. ’Vo e o FRELIMO’ indica es
ha he esponden submi ed a ballo on which hey checked he box nex o ’FRELIMO’ o he s a ed le el o go e nmen (de ined
o esponden s who submi ed any ballo ). ’Submi ballo ’ indica es ha he esponden submi ed a ballo . All eg essions include
block ixed e ec s. * p<0.10, ** p<0.05, *** p<0.01
32
A.6 Tes ing o expe imen e demand e ec s
Table A.5: E ec s on expe imen e demand ques ions
In o would inc ease
neighbo s’ paymen
Public goods would
inc ease own paymen
Local au onomy would
inc ease own paymen
Public goods -0.013 0.041 0.019
(0.042) (0.041) (0.040)
Local au onomy 0.013 0.035 -0.022
(0.042) (0.041) (0.040)
PG ×LA 0.015 -0.056 -0.029
(0.060) (0.058) (0.057)
N 922 922 922
Mean (con ol g oup) 0.564 0.560 0.636
p- al: T1=T2 0.540 0.872 0.302
p- al: T1 + T2 + T1 ×T2 = 0 0.713 0.618 0.434
Coe icien s om he eg ession speci ied in Equa ion 1, wi h s anda d e o s shown in pa en heses. The ou come in Column
1 indica es ha he eponden answe ed ’Ve y likely’ o ’Likely’ o he ques ion ’Imagine you ha e a neighbo who doesn’
pay hei p ope y axes. I ha neighbo could hea his in o ma ion, how likely is i ha hey would be mo e mo i a ed o
pay IPRA?’ The ou come in Column 2 indica es ha he eponden answe ed ’Ve y likely’ o ’Likely’ o he ques ion ’I he
municipali y imp o ed publice se ice p o ision, how likely is i ha you would be mo e mo i a ed o pay IPRA?’ The ou come
in Column 3 indica es ha he eponden answe ed ’Ve y likely’ o ’Likely’ o he ques ion ’How likely is i ha he idea o he
municipali y ha ing mo e independence ela i e o he cen al go e nmen would make you mo e mo i a ed o pay IPRA?’ All
eg essions include block ixed e ec s. * p<0.10, ** p<0.05, *** p<0.01
33
B In o ma ion ea men s
B.1 Con ol condi ion
The ollowing ex was ead o all pa icipan s:
Po uguese English
Ago a que emos o nece algumas in o mações
ú eis sob e o papel dos impos os no município,
pa icula men e o Impos o P edial Au á quico ou
IPRA.
Pa a p op iedades esidenciais, a axa do IPRA é
0,04% do alo da p op iedade. Is o que dize
que se uma p op idade i esse o alo de 1 milhão
de me icais, o dono e ia de paga 400 me icais
po ano como IPRA.
Se o uma p op iedade come cial, o alo é de
0,07% do alo da p op iedade – uma p op iedade
come cial com o alo de 1 milhão de me icais
e ia de paga 700 me icias po ano como IPRA.
Paga o IPRA é necessá io pa a ende a p o-
p iedade.
Esses impos os, quando o em pagos, con ibuem
pa a o o çamen o do município. O o çamen o do
município é ap oximadamen e de 500 me icais po
munícipe po ano.
Now we wan o p o ide some use ul in o ma ion
abou he ole o axes in he municipali y, pa ic-
ula ly he Municipal P ope y Tax o IPRA.
Fo esiden ial p ope ies, he IPRA a e is 0.04%
o he p ope y alue. This means ha i a
p ope y had a alue o 1 million me icais, he
owne would ha e o pay 400 me icais pe yea as
IPRA.
I i is a comme cial p ope y, he alue is 0.07% o
he p ope y alue – a comme cial p ope y wi h
a alue o 1 million me icais would ha e o pay
700 me icias pe yea as IPRA.
Paying IPRA is necessa y o sell he p ope y.
These axes, when paid, con ibu e o he mu-
nicipali y’s budge . The municipali y’s budge is
a ound 500 me icais pe ci izen pe yea .
34
B.2 Public good condi ion
The ollowing ex was ead o all pa icipan s in he “public good” ea men :
Po uguese English
O “con a o social” signi ica que os cidadãos êm
dize sob e como os seus go e nos se compo am. Os
cidadãos podem exp essa as suas p eocupações. Eles
pagam impos os em oca dos se iços públicos que são
o e ecidos pelo go e no.
Pa a que o/a S /a enha uma isão mais ampla do
compo amen o do go e no, amos aze uma e isão
de alguns dos bens públicos o necidos pelo município
nos ú limos 10 anos.
Vá ias das a é ias c í icas da cidade o am epa adas
e os seus bu acos apados, po exemplo as a enidas
Edua do Mondlane, Július Nye e e, 7 de Se emb o,
Josina Machel, Samo a Michel, Ma ginal, Filipe Samuel
Magaia, e 25 de Junho. Vá ias uas o am pa imen adas
ou as al adas: Rua Ahmed Sékou Tou é que passa no
IFP; a A enida Albe o Cassimo ligando a Sag ada e
o me cado de Aquima; e ou as nos bai os Kansa,
Vilapi a, Mapiazua, B andão, 17 de Se emb o, San-
ga i ei a, e Manhaua, en e ou as. Fo am man idas as
uas F ança e Pio Ma os, além da manu enção de o ina
de es adas de e a ba ida, bem como o abaulamen o
numa ex ensão de mais de 200 kms.
Foi cons uída uma ex ensão de 22 kms de alas de
d enagem, abe as e echadas.
Hou e á ias ou as cons uções públicas, en e elas
• 2 Biblio ecas Municipais,
• Escola P imá ia Comple a de I agalane,
• Me cado de Sanga i ei a.
Na á ea de saneamen o, o am cons uídos:
• 14 Silos pa a o depósi o dos esíduos sólidos,
• 22 poços de água pa a os di e sos bai os,
• mais de 100 la inas pa a a população ca enciada.
E o am adqui idos ces os, con en o es e camiões de Lixo
Também o am a ibuídos mais de 2000 DUATs.
Ago a ou mos a algumas o os dos bens públicos do
município nos úl imos anos.
The “social con ac ” means ha ci izens ha e a
say in how hei go e nmen s beha e. Ci izens can
exp ess hei conce ns. They pay axes in exchange
o public se ices ha a e o e ed by he go e nmen .
To gi e you a b oade iew o he go e nmen ’s
beha io , le ’s e iew some o he public goods
p o ided by he municipali y in he las 10 yea s.
Se e al o he ci y’s c i ical a e ies we e epai ed
and po holes illed, o example Edua do Mondlane,
Július Nye e e, 7 de Se emb o, Josina Machel, Samo a
Michel, Ma ginal, Filipe Samuel Magaia, and 25
de Junho a enues. Se e al s ee s we e pa ed o
asphal ed: Ahmed Sékou Tou é which passes by IFP;
Albe o Cassimo A enue connec ing Sag ada and
Aquima ma ke ; and o he s in he neighbo hoods
Kansa, Vilapi a, Mapiazua, B andão, 17 de Se emb o,
Sanga i ei a, and Manhaua, among o he s. The
s ee s F ança and Pio Ma os we e main ained, as
well as he ou ine main enance o di oads, and he
embankmen in an ex ension o mo e han 200 kms.
An ex ension o 22 kms o d ainage di ches, open
and closed, was buil .
The e we e se e al o he public cons uc ions, among
hem
• 2 Municipal Lib a ies,
• Comple e P ima y School o I agalane,
• Sanga i ei a Ma ke .
In he a ea o sani a ion, he ollowing we e buil :
• 14 Silos o he deposi o solid was e,
• 22 wa e wells o he a ious neighbo hoods,
• mo e han 100 la ines o he needy popula-
ion.
And baske s, con aine s and ga bage ucks we e
acqui ed.
Also mo e han 2000 DUATs we e awa ded.
Now I will show you some pho os o he public goods
o he municipali y in he las yea s.
35

B.2.1 Public good condi ion pho os
Figu e B.1
(a) Roads
(b) Fi e igh e s
(c) D ains (d) Mo e oads
36
B.3 Local au onomy condi ion
The ollowing ex was ead o all pa icipan s in he “local au onomy” ea men :
Po uguese English
Ago a, o município em que usa o seu o çamen o
pa a euni odos os seus gas os, inclusi é os bens
públicos que o nece aos munícipes.
Ap oximadamen e 70% desse alo em em o ma
de ans e ência do go e no cen al. Algumas
pessoas dizem que isso c ia uma si uação que
p ejudica a independência polí ica e inancei a do
município. A ideia é:
Quando o município depende do go e no cen al
pa a os undos do seu o çamen o, o go e no cen-
al exe ce con olo sob e o município a a és do
con ole dos undos. Se o município es á a aze
coisas que o go e no cen al não gos a, o go e no
cen al pode e e ou a asa os pagamen os pa a
en a in luencia o compo amen o do município.
Se os obje i os do go e no cen al não são os
mesmos que os obje i os do município, isso pode
diminui a au onomia que o município em de
aça o seu p óp io caminho quan o à polí ica.
Numa democ acia, os munícipes pagam impos os
pa a que o es ado uncione e aja a bem do po o.
A inal de con as, os salá ios dos uncioná ios
públicos não êm de nenhum pa ido polí ico,
mas do po o que abalha pa a pode paga os
seus impos os.
En ão, uma manei a impo an e de ga an i a
au onomia do município é paga impos os pa a
que o município enha a capacidade de ealiza os
seus planos sem depende do go e no cen al.
Ago a ou mos a algumas o os i adas em e en-
os do go e no a ual do município.
Now, he municipali y has o use i s budge o
mee all i s expenses, including he public goods
ha i p o ides o he ci izens.
A ound 70% o his alue comes in he o m
o ans e om he cen al go e nmen . Some
people say ha his c ea es a si ua ion ha ha ms
he poli ical and inancial independence o he
municipali y. The idea is:
When he municipali y depends on he cen al
go e nmen o he unds o i s budge , he
cen al go e nmen exe s con ol o e he mu-
nicipali y h ough he con ol o he unds. I
he municipali y is doing hings ha he cen al
go e nmen does no like, he cen al go e nmen
can wi hhold o delay paymen s o y o in luence
he beha io o he municipali y. I he goals o
he cen al go e nmen a e no he same as he
goals o he municipali y, his can diminish he
au onomy ha he municipali y has o ace i s
own pa h ega ding poli ics.
In a democ acy, ci izens pay axes so ha he s a e
wo ks and ac s o he good o he people. A e
all, he sala ies o public se an s do no come
om any poli ical pa y, bu om he people who
wo k o be able o pay hei axes.
So, an impo an way o gua an ee he au onomy
o he municipali y is o pay axes so ha he
municipali y has he capaci y o ca y ou i s plans
wi hou depending on he cen al go e nmen .
Now I will show you some pho os aken a e en s
o he cu en go e nmen o he municipali y.
37
B.3.1 Local au onomy condi ion pho os
Figu e B.2
(a) Bikes (b) A speech
(c) Mo e bikes
(d) Ano he speech
38