... that the crowding-in effect only occurs in the relatively low-income inequality regime: a 10% increase in public investment results in a 0.8% and 3.4% increase in private investment after one and four quarters, respectively. Conversely, the response is not statistically different from zero in the relatively high...

... understanding of the presence or absence of the crowding effect in the Brazilian economy by leveraging an extensive historical database. Our central argument posits that the recent decline in private capital accumulation over the last few decades can be attributed to shifts in economic policies – moving from...