On the sustainability and synchronization of fiscal policy in Latin America



Document title: On the sustainability and synchronization of fiscal policy in Latin America
Journal: Latin american journal of economics
Database: CLASE
System number: 000463502
ISSN: 0719-0425
Authors: 1
Institutions: 1University of the Witwatersrand, Wits Business School, Johanesburgo, Transvaal. Sudáfrica
Year:
Season: Nov
Volumen: 52
Number: 2
Pages: 213-240
Country: Chile
Language: Inglés
Document type: Artículo
Approach: Analítico, descriptivo
English abstract This paper explores the sustainability of fiscal policy for a panel of Latin American countries over the period 1990-2012. We extend the literature on the causal relationship between government expenditure (GX) and revenue (GR) in the short run and long run. Our results show a significant long-run relationship between GX and GR, suggesting that fiscal policies are consistent with their intertemporal budget constraints. We establish bidirectional causality between revenue and expenditure in the long run, indicating a contribution from both GX and GR in establishing steady state equilibrium following substantial deviations. Our data also uphold the fiscal synchronization thesis
Disciplines: Economía
Keyword: Política económica,
América Latina,
Gasto público,
Política fiscal,
Sostenibilidad fiscal,
Panel de datos,
Equilibrio fiscal,
Presupuesto federal
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