This note adds to the discussion about the Brazilian state conjuncture, characterized by fiscal fragility and increasing corruption. We propose the estimation of three different approaches used in the international literature in order to measure the impact of the Governmental Corruption Index on the Net Consolidated Debt as the ratio of the Gross Domestic Product of these federative entities. The elasticity-corruption of debt is significant at 1 % and ranges from 0.015 to 0.020. The empirical exercise suggested here still allows us to infer that the reduction of the indebtedness in the states through the fight against corruption is more efficient if combined with fiscal austerity than when combined with other economic policies.
Fontes: STN, IPEA e