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The purpose of this paper is to examine the effects of premium subsidies provided by the Brazilian government through the Rural Insurance Premium Subvention Program (PSR) on the quantity demanded for crop insurance by grains producers of southern Brazil.

A fixed effects model was applied to an unbalanced panel data of municipalities of southern Brazil considering the years between 2006 and 2015. Three measures of crop insurance demand were considered: level of total premiums, level of total premiums per hectare and level of total liability per hectare.

Results were in line with previous literature, suggesting the existence of a positive, although inelastic, effect of the subsidy level on the demand for crop insurance. However, unitary elasticity estimates were found for all grains when considered total premiums per hectare as crop insurance demand measure.

The investigation focuses on a crop insurance program conducted in a tropical developing country – a completely different background than previously analyzed in literature. In addition, Brazilian government considers the PSR as one of its most important agricultural programs and this paper is pioneer in empirically explain the huge public investments made to the PSR through the estimation of the effects of premium subsidies on the quantity demanded for crop insurance in Brazil.

This paper aims to address the discussion on the credit disbursement of US$28.6bn from Brazilian National Economic and Social Development Bank (BNDES) to Brazilian state governments during the period from 2009 to 2014. They try to identify the main drivers of the credit allocation in both cross state and time.

The authors use a dynamic balanced panel to estimate the role of technical and socioeconomic variables.

The results suggest that the states’ need for financing via BNDES exhibits neither inertial nor explosive behavior. The authors find an efficiency elasticity of this resource of 0.20. In addition, the impact of a positive change in the state fiscal status leads to an increase of 2.5 per cent in the indebtedness capacity. Finally, they find that wealthier states are more successful in demanding credit from BNDES.

This analysis of resource allocation is useful for modeling the determinants of international financial institutions as central planners. The authors also invite researchers to discuss the decision-making processes that characterize the federative pact in Brazil.

Although a burgeoning body of literature has examined the role of BNDES as a creditor institution for firms, its relationship with the public sector, in special subnational governments, has been rarely studied.