The pattern of Brazilian fiscal policy and the role of fiscal responsibility law

• Grant number: 12/04600-0
• Support type: Scholarships in Brazil - Doctorate
• Effective date (Start): July 01, 2012
• Effective date (End): June 30, 2015
• Field of knowledge: Applied Social Sciences - Economics - Fiscal and Monetary Policies
• Principal researcher: Fabiana Fontes Rocha
• Grantee: Carlândia Brito Santos Fernandes
• Home Institution: Faculdade de Economia, Administração e Contabilidade (FEA). Universidade de São Paulo (USP). São Paulo , SP, Brazil
• Associated scholarship(s): 13/07326-9 - The pattern of fiscal policy in developing economies: there is a trap of procyclical fiscal policy?, BE.EP.DR

Abstract

In the literature it has been argued that developing countries conduct their fiscal policies differ from those practiced in industrialized countries: while the former adopt the kind of pro-cyclical, destabilizing, which intensifies recessions and does not allow the operation of automatic stabilizers, countries of high income typically use counter-cyclical, stabilizer. The main reason that would lead developing countries to adopt such a policy would achieve credibility. The main objective of this research is to analyze the fiscal policy in Brazil between 1999 and 2009 has been pro-cyclical or counter-cyclical and its determinants, and discuss the role of the Fiscal Responsibility Law in this context. To this, will be estimate a model to obtain the structural balance of the fiscal budget, that is, a way to monitor fiscal policy.