ON THE SUSTAINABILITY AND SYNCHRONIZATION OF FISCAL POLICY IN LATIN AMERICA

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 r...

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Autores principales:	Alagidede,Paul, Tweneboah,George
Lenguaje:	English
Publicado:	Pontificia Universidad Católica de Chile. Instituto de Economía. 2015
Materias:	Fiscal sustainability Latin America panel cointegration fiscal synchronization intertemporal budget constraints
Acceso en línea:	http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0719-04332015000200004
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spelling	oai:scielo:S0719-043320150002000042016-01-08ON THE SUSTAINABILITY AND SYNCHRONIZATION OF FISCAL POLICY IN LATIN AMERICAAlagidede,PaulTweneboah,George Fiscal sustainability Latin America panel cointegration fiscal synchronization intertemporal budget constraints 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.info:eu-repo/semantics/openAccessPontificia Universidad Católica de Chile. Instituto de Economía.Latin american journal of economics v.52 n.2 20152015-12-01text/htmlhttp://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0719-04332015000200004en10.7764/LAJE.52.2.213
institution	Scielo Chile
collection	Scielo Chile
language	English
topic	Fiscal sustainability Latin America panel cointegration fiscal synchronization intertemporal budget constraints
spellingShingle	Fiscal sustainability Latin America panel cointegration fiscal synchronization intertemporal budget constraints Alagidede,Paul Tweneboah,George ON THE SUSTAINABILITY AND SYNCHRONIZATION OF FISCAL POLICY IN LATIN AMERICA
description	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.
author	Alagidede,Paul Tweneboah,George
author_facet	Alagidede,Paul Tweneboah,George
author_sort	Alagidede,Paul
title	ON THE SUSTAINABILITY AND SYNCHRONIZATION OF FISCAL POLICY IN LATIN AMERICA
title_short	ON THE SUSTAINABILITY AND SYNCHRONIZATION OF FISCAL POLICY IN LATIN AMERICA
title_full	ON THE SUSTAINABILITY AND SYNCHRONIZATION OF FISCAL POLICY IN LATIN AMERICA
title_fullStr	ON THE SUSTAINABILITY AND SYNCHRONIZATION OF FISCAL POLICY IN LATIN AMERICA
title_full_unstemmed	ON THE SUSTAINABILITY AND SYNCHRONIZATION OF FISCAL POLICY IN LATIN AMERICA
title_sort	on the sustainability and synchronization of fiscal policy in latin america
publisher	Pontificia Universidad Católica de Chile. Instituto de Economía.
publishDate	2015
url	http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0719-04332015000200004
work_keys_str_mv	AT alagidedepaul onthesustainabilityandsynchronizationoffiscalpolicyinlatinamerica AT tweneboahgeorge onthesustainabilityandsynchronizationoffiscalpolicyinlatinamerica
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ON THE SUSTAINABILITY AND SYNCHRONIZATION OF FISCAL POLICY IN LATIN AMERICA

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