This paper estimates a stochastic production frontier, to investigate whether municipalities covered by oil royalties in the last decade have reduced their tax effort in Brazil. The issue is relevant to the prospect of a substantial increase in these revenues and the new rules for distribution...

In 1997, Brazil approved a new law establishing the regulatory framework of oil and gas industry. One of the most important changes was the distribution of petroleum rents to states and Municipalities. The volume received by each municipality varies considerably, since it depends on a range of...

With the pre-salt discoveries and the increasing distribution of royalties in Brazil, the discussions on the impact of oil windfalls - royalties and special participation - on benefited Municipalities have been intensified. This article aims to contribute to the understanding of the issue, using...