Are increases in government spending neutral? Evidence from Latin-American households



Document title: Are increases in government spending neutral? Evidence from Latin-American households
Journal: Journal of applied economics
Database: CLASE
System number: 000401687
ISSN: 1667-6726
Authors: 1
1
Institutions: 1Universidade Catolica de Brasilia, Brasilia, Distrito Federal. Brasil
Year:
Season: May
Volumen: 16
Number: 1
Pages: 101-120
Country: Argentina
Language: Inglés
Document type: Artículo
Approach: Analítico, descriptivo
English abstract Using a dynamic optimization model, Ricardian Equivalence (RE) is empirically tested for Argentina, Brazil, Chile and Mexico. The system of equations obtained in the theoretical model is solved using Generalized Method of Moments and Full Information Maximum Likelihood. Results indicate that the null hypothesis concerning RE cannot be rejected for Argentina, Brazil, and Chile but is strongly rejected for Mexico. Therefore, when the fiscal authority seeks to stimulate economic activity by means of tax reductions and increases in government spending, the outstanding effect might be only a rise in private savings for the first three countries
Disciplines: Economía
Keyword: Econometría,
América Latina,
Argentina,
Brasil,
Chile,
México,
Política fiscal,
Gasto gubernamental,
Fomento económico,
Equivalencia ricardiana,
Deuda pública,
Gasto familiar
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