Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/322108 
Year of Publication: 
2025
Series/Report no.: 
Texto para Discussão No. 3115
Publisher: 
Instituto de Pesquisa Econômica Aplicada (IPEA), Brasília
Abstract (Translated): 
The aim of this study is to analyze the impact of the dynamics of the Gross General Government Debt (GGGD) on the process of fixed capital accumulation in the Brazilian economy. The research examines the connections between public debt interest rates, the fiscal cost to the state, and fixed capital accumulation, as well as their effect on economic growth. The central hypothesis is that public debt acts as a barrier to the expansion of fixed capital due to the high fiscal costs associated with elevated interest rates. To ensure debt sustainability, the government is compelled to pursue primary surpluses and restrictive fiscal rules, which result in the compression of public investment, thereby weakening economic growth.
Subjects: 
nterest rate
debt service
public investment
JEL: 
E46
H63
R53
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Working Paper

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