Renata Motta Café is a Fiscal Management Specialist at the IDB Country Office in Brazil, where she leads projects aimed at modernizing fiscal management of subnational governments. Renata earned her master’s degree in economics from the Getulio Vargas Foundation (EPGE/FGV), in Brazil, and is currently pursuing her Ph.D. at the same institution. Prior to joining IDB, she worked as a researcher at the FGV Center for Regulation and Infrastructure Studies and as a public policy analyst. She holds a bachelor’s degree in economics from the University of Brasília with academic experiences at Universidad Carlos III de Madrid and the London School of Economics.

Abstract: Limited access to credit has been identified as a major constraint to sustainable municipal development, but empirical evidence on the effectiveness of credit operations remains inconclusive. This paper evaluates the impact of federal government guaranteed loans on public expenditures. Using data from Brazilian municipalities and a regression discontinuity design --- that leverages a discontinuity in the eligibility criteria for federal government guarantees ---, I show that the loans have a positive impact on the quality of local expenditure and on social outcome indicators. This impact is characterized by a significant increase in investment while keeping personnel expenditures stable. 

Autora: Renata Motta Café (IDB Country Office in Brazil)

Organiza: Centro de Estudios en Finanzas Públicas FCE UNLP

Contacto: cefip@econo.unlp.edu.ar