Mendes, Marcos - In: Brazilian journal of political economy 19 (1999) 73, pp. 145-157
This paper shows that the rules established to control state and municipal debt in Brazil are inefficient. They cannot … prevent the excessive growth of the debt nor avoid the approval of loans that have a negative benefit-cost relation. The paper … uses theoretical models to show that the federal senate, responsible for debt control, does not maintain enough incentives …