State-government bailouts in Brazil by Afonso S. Bevilaqua. “As a result of the consolidation of the democracy after the end of the military regime in the mid-1980s, Brazil has gone through a period of remarkable decentralization both in fiscal and political terms. The move towards decentralized management and control of public finances has been followed by a series of bailouts of state governments by the federal government…The main purpose of this paper is to assess the determinants of state debt bailous in Brazil and their relationship with states’ fiscal discipline during the 1990s.”
See pdf attached
