A sustentabilidade da política fiscal do RS (1970-97)

Abstract

Was the fiscal policy of the state of Rio Grande do Sul sustainable during the 1970-1997 period? This article presents the intertemporal budget equilibrium hypothesis in terms of debt/product ratio and tests the stationarity of the debt/ /GNP, primary defict/GNP and public deficit/GNP ratios in the case of Rio Grande do Sul. Based on these tests, there is evidence of sustainability of gaucho fiscal policy during the period in question.