Does the size of the government increase corruption? An analysis for Brazilian municipalities

Maria Eduarda Rodrigues Paiva

Universidade Federal do Ceará, Sobral / CE - Brazil

Lilian Lopes Ribeiro

Universidade Federal do Ceará, Sobral / CE - Brazil

Jose Weligton Felix Gomes

Universidade Federal do Ceará, Sobral / CE - Brazil

Maria Eduarda Rodrigues Paiva - Graduation in Economics from the Federal University of Ceará. E-mail: eduarda.rodrigues@gmail.com

Lilian Lopes Ribeiro - Post-doctorate in Economics; Adjunct professor in the Economics course at the Federal University of Ceará; Researcher linked to CAEN/UFC. E-mail: liadiniz-21@hotmail.com

Jose Weligton Felix Gomes - Doctor in Economics; Adjunct professor in Economics and Finance courses at the Federal University of Ceará; Researcher to CAEN/UFC. E-mail: weligtongomes@gmail.com

Variable	Mean	Standard-Deviation	Minimum	Maximum
Corruption	8.96	43.62	0	1,074
Government Size	19.91	77.57	-481.89	15,457.56
IFDM	0.63	0.12	0.18	0.93
Spending Productivity	3.92	3.31	-150.67	664.82
GDP per capita	12.357,79	15,800.12	-1,459.79	815,697.80
Expenses	2.56e+07	2.00e+08	0	2.03e+10
Investments	5,055.41	4.94e+07	0	4.93e+09

{C o r r u p}_{i t} = α + β_{2} {T G o v}_{i t} + β_{3} {I F D M}_{i t} + β_{4} {P r o d G}_{i t} + β_{5} {P I B p c}_{i t} + β_{6} {D e s P e s}_{i t} + β_{7} {I n v e s t}_{i t} + β_{8} {D T e m p}_{i t} + μ_{i t}

{C o r r u p}_{i t} = (α + ε_{i t}) + β_{2} {T G o v}_{i t} + β_{3} {I F D M}_{i t} + β_{4} {P r o d G}_{i t} + β_{5} {P I B p c}_{i t} + β_{6} {D e s P e s}_{i t} + β_{7} {I n v e s t}_{i t} + β_{8} {D T e m p}_{i t} + μ_{i t}

{C o r r u p}_{i t} = α + β_{2} {T G o v}_{i t} + β_{3} {I F D M}_{i t} + β_{4} {P r o d G}_{i t} + β_{5} {P I B p c}_{i t} + β_{6} {D e s P e s}_{i t} + β_{7} {I n v e s t}_{i t} + β_{8} {D T e m p}_{i t} + (ε_{i t} + μ_{i t})

(\frac{ε_{1 i t}}{ε_{2 i t}}) ~ N o r m a l B i v a r i a d a ([\begin{matrix} 0 \\ 0 \end{matrix}], [\begin{matrix} σ_{1}^{2} & {ρ σ}_{1} \\ {ρ σ}_{1} & 1 \end{matrix}])

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