# Is the public sector of your country a diffusion borrower? Empirical evidence from Brazil

**Authors:** Leno S. Rocha, Frederico S. A. Rocha, Thársis T. P. Souza  
**arXiv:** [1604.07782](https://arxiv.org/abs/1604.07782)  
**Date:** 2016-04-26  
**Summary page:** https://www.summarizepaper.com/fr/paper/1604.07782v1/

## Abstract

We propose a diffusion process to describe the global dynamic evolution of credit operations at a national level given observed operations at a subnational level in a sovereign country. Empirical analysis with a unique dataset from Brazilian federate constituents supports the conclusions. Despite the heterogeneity observed in credit operations at a subnational level, the aggregated dynamics at a national level were accurately described with the proposed model. Results may guide management of public finances, particularly debt manager authorities in charge of reaching surplus targets.