  Brazilian executive body has consistently vetoed legislative initiatives
easing creation and emancipation of municipalities. The literature lists
evidence of the negative results of municipal fragmentation, especially so for
metropolitan regions. In order to provide evidences for the argument of
metropolitan union, this paper quantifies the quality of life of metropolitan
citizens in the face of four alternative rules of distribution of municipal tax
collection. Methodologically, a validated agent-based spatial model is
simulated. On top of that, econometric models are tested using real exogenous
variables and simulated data. Results suggest two central conclusions. First,
the progressiveness of the Municipal Participation Fund and its relevance to a
better quality of life in metropolitan municipalities is confirmed. Second,
municipal financial merging would improve citizens' quality of life, compared
to the status quo for 23 Brazilian metropolises. Further, the paper presents
quantitative evidence that allows comparing alternative tax distributions for
each of the 40 simulated metropolises, identifying more efficient forms of
fiscal distribution and contributing to the literature and to contemporary
parliamentary debate.
