IDEAS home Printed from https://ideas.repec.org/a/ekm/repojs/v42y2022i3p664-677id2344.html
   My bibliography  Save this article

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

Author

Listed:
  • Eduardo Lima Campos
  • Rubens Penha Cysne
  • Alexandre L. Madureira

Abstract

The fiscal reaction function measures how the government’s primary surplusreacts to the evolution of public debt. Campos and Cysne (2019b) observed that thereaction function has been almost steadily decreasing since 2012 and it has turned frompositive to negative values in 2017 and 2018. In the subsequent period, the improvementof 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 fiscaldeterioration, leading the fiscal reaction coefficient to assume, again, negative values. JEL Classification: H30; H60; E50.

Suggested Citation

  • Eduardo Lima Campos & Rubens Penha Cysne & Alexandre L. Madureira, 2022. "A further deterioration of the Brazilian fiscal reaction in view of COVID-19," Brazilian Journal of Political Economy, Center of Political Economy, vol. 42(3), pages 664-677.
    • Handle: RePEc:ekm:repojs:v:42:y:2022:i:3:p:664-677:id:2344
    as

    Download full text from publisher

    File URL: https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/2344/2288
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Brazil; fiscal reaction; COVID-19; Debt/GDP ratio; fiscal sustainability; Kalman filter;
    All these keywords.

    JEL classification:

    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General
    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ekm:repojs:v:42:y:2022:i:3:p:664-677:id:2344. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Brazilian Journal of Political Economy (Brazil) (email available below). General contact details of provider: https://centrodeeconomiapolitica.org/repojs/index.php/journal/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.