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dc.titleFiscal Space of Brazilian States
dc.contributor.authorBastos, Fabiano
dc.contributor.authorPineda, Emilio
dc.contributor.orgunitFiscal and Municipal Management Division
dc.coverageBrazil
dc.date.available2013-08-22T00:00:00
dc.date.issue2013-08-22T00:00:00
dc.description.abstractWe estimate the fiscal space of Brazilian States defined as the difference between a State's actual debt and the theoretical debt limit implied by the historical behavior of its policymakers. We estimate fiscal reaction functions and debt limits using publicly available data between 2000 and 2011 for the 26 Brazilian States and the Federal District. The results suggest that, after a decade of fiscal consolidation, a number of States have fiscal space but there remains significant heterogeneity across States. Going forward, enhancing the role of market incentives and strengthening rules-based approaches governing subnational debt build-up would contribute to a prudent and effective use of existing fiscal space.
dc.format.extent23
dc.identifier.doihttp://dx.doi.org/10.18235/0006972
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Fiscal-Space-of-Brazilian-States.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectGovernance
dc.subjectFiscal Policy
dc.subject.jelcodeH62 - Deficit • Surplus
dc.subject.jelcodeH63 - Debt • Debt Management • Sovereign Debt
dc.subject.jelcodeH74 - State and Local Borrowing
dc.subject.keywordsFiscal Space, Fiscal Sustainability, Debt Dynamics, Subnational Borrowing, State Finance.
dc.typeDiscussion Papers
idb.identifier.pubnumberDiscussion Papers
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