Impact of fiscal management and royalties on crime indicators: a study on the state of Rio de Janeiro

Abstract

Rio de Janeiro State has the second highest GDP in Brasil and present higher criminal indicators. The state also presents high revenue from royalties from petroleum. In this sense, the present study has three objectives: i) to verify the impact of tax management quality on the criminality rates; ii) to observe the impact of received royalties on the criminality rates; iii) to analyze the interaction between royalties and quality of the fiscal management. The results indicate that a good tax management contributes towards lowering criminality rate. Moreover, the royalties lower criminality rates. The interaction between tax management and royalties lower criminality rates.