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Is the public sector of your country a diffusion borrower? Empirical evidence from Brazil.


ABSTRACT: We propose a diffusion process to describe the global dynamic evolution of credit operations at a national level given observed operations at a subnational level in a sovereign country. Empirical analysis with a unique dataset from Brazilian federate constituents supports the conclusions. Despite the heterogeneity observed in credit operations at a subnational level, the aggregated dynamics at a national level were accurately described by the proposed model. Results may guide management of public finances, particularly debt manager authorities in charge of reaching surplus targets.

SUBMITTER: Rocha LS 

PROVIDER: S-EPMC5628819 | biostudies-other | 2017

REPOSITORIES: biostudies-other

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Is the public sector of your country a diffusion borrower? Empirical evidence from Brazil.

Rocha Leno S LS   Rocha Frederico S A FSA   Souza Thársis T P TTP  

PloS one 20171005 10


We propose a diffusion process to describe the global dynamic evolution of credit operations at a national level given observed operations at a subnational level in a sovereign country. Empirical analysis with a unique dataset from Brazilian federate constituents supports the conclusions. Despite the heterogeneity observed in credit operations at a subnational level, the aggregated dynamics at a national level were accurately described by the proposed model. Results may guide management of publi  ...[more]

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