FISCAL FEDERALISM AND ITS INTERFERENCE WITH FISCAL STRESS IN DRIVING COOPERATION

This study seeks to investigate how the Brazilian federalism model has led municipalities to fiscal stress and, consequently, to cooperation. To this end, the theory of institutional collective action was used as a way to estimate the effects of fiscal federalism on fiscal stress, verifying the relationship that exists between the dependent variables of cooperative and non-cooperative municipalities by region in Brazil. It is a research of a deductive nature because it is based on a theory to predict the occurrence of the phenomenon. The methods used were descriptive statistical techniques and inferential tests and statistical models. For data analysis, a logistic regression model was used, using the Stepwise method. The findings indicate that not only federalism leads to cooperation, but that institutional collective action presents a way for local governments to obtain collective gains, and that the region variable influences the decision to cooperate.