where Revit is per capita general own-source revenue or revenue from different sources for municipality i in year t in different model specifications, TELit is a dummy variable for municipality i in year t (1 ¼ municipality i in year t subject to TELs; 0 ¼ municipality i in year t not subject to TELs), IGRit is per capita intergovernmental revenue, Xit is a vector of social–economic variables that reflect the characteristics of the municipalities, di is a city-specific intercept, Zt is a time-specific intercept, and eit is the overall error term