Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/309146 
Year of Publication: 
2024
Series/Report no.: 
IDB Working Paper Series No. IDB-WP-1622
Publisher: 
Inter-American Development Bank (IDB), Washington, DC
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 social outcome indicators. This impact is characterized by a significant increase in investment while keeping personnel expenditures stable.
Subjects: 
state capacity
access to credit
public expenditure
municipal development
JEL: 
H71
H75
R51
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Working Paper

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