Fiscal insurance and public debt management: Evidence for a large emerging economy

Abstract

This paper is a contribution to the analysis concerning fiscal insurance and public debt management. We built fiscal indicators and present empirical evidence for the effect of the public debt management on the fiscal insurance based on the Brazilian economy. The analysis is based on two steps: the first builds fiscal indicators and analyzes their performance over time, and the second presents regressions of the main variables regarding public debt management on the fiscal insurance indicators. The findings denote that there was a reduction in the fiscal vulnerability, but the public debt management was not effective in increasing fiscal insurance.