Work

A further deterioration of the Brazilian fiscal reaction in view of COVID-19

Year: 2022

Type: article

Abstract: ABSTRACT The fiscal reaction function measures how the government’s primary surplus reacts to the evolution of public debt. Campos and Cysne (2019b) observed that the reaction function has been almost steadily decreasing since 2012 and it has turned from positive to negative values in 2017 and 2018. In the subsequent period, the improvement of some economic indicators led the fiscal reaction to a recovery. Nevertheless, in 2020, with the advent of COVID-19, health spending and emergency aids caused a sharp fiscal deterioration, leading the fiscal reaction coefficient to assume, again, negative values.

Source: Brazilian Journal of Political Economy

DOI: 10.1590/0101-31572022-3286

Authors: EDUARDO LIMA CAMPOS, RUBENS PENHA CYSNE, ALEXANDRE L. MADUREIRA

Language: English

Topic: Fiscal Policies and Political Economy

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: diamond

Funder: Coordenação de Aperfeiçoamento de Pessoal de Nível Superior

Award: G29316538

OpenAlex ID: W4290975758

FWCI: 0.394

Cites: 9

Cited by: 3

Related to: 10