Reduction of public consumption boosts growth and welfare in Brazil.
The article looks at how different ways of paying for public projects in Brazil affect the economy. By using a model of the Brazilian economy, the researchers found that reducing public spending is the best way to finance public investments. This approach leads to more economic growth and better well-being for people in Brazil. The study shows that increasing taxes and cutting public investments have slowed down Brazil's growth, while expanding tax collection has had a bigger impact than reducing public investments.