Assimetria cíclica na política fiscal dos Estados brasileiros

Abstract

This paper aims to study the behavior of Brazilian States’ fiscal policy during the period 1997-2004. It seeks to answer two questions: is the fiscal policy pro-cyclical or anti-cyclical? Is it behavior asymmetric during contractions and expansions? The evidence indicates that the States fiscal policy is pro-cyclical and asymmetric. Besides, the adoption of the Fiscal Responsibility Law made the pro-cyclical fiscal policy weaker and also symmetric.