Estimating the Fiscal Multiplier in Argentina

Argentina's government has resorted to fiscal policy as a countercyclical tool to mitigate the negative impact of the current economic downturn on aggregate demand. Empirical results based on a vector error correction model suggest, however, that the fiscal multiplier is relatively small and short-lived. This could reflect a number of factors, including the higher propensity of households to save during the economic downturn, the implementation lag of public expenditures, particularly of capital expenditures, and the narrow tax base that limits the impact of countercyclical revenue measures on domestic demand.

Bibliographic Details

Main Authors:	Anos-Casero, Paloma, Cerdeiro, Diego, Trezzi, Riccardo
Format:	Policy Research Working Paper biblioteca
Language:	English
Published:	2010-02-01
Subjects:	AGGREGATE DEMAND, AUCTION, AUTOREGRESSION, BIDS, BONDS, BORROWING, CAPITAL EXPENDITURES, CAPITAL REPATRIATION, COMMODITY, COMMODITY EXPORTS, CONSUMPTION INCREASES, CREDIT LINES, CREDITORS, DUMMY VARIABLES, ECONOMIC ACTIVITY, ECONOMIC DOWNTURN, ECONOMIC FLUCTUATIONS, ECONOMIC RESEARCH, ECONOMIC SLOWDOWN, ELASTICITY, EMERGING ECONOMIES, EMERGING-MARKET, EXPENDITURE, EXPENDITURE INCREASE, EXPENDITURES, EXPORTS, EXTERNAL SHOCKS, FINANCIAL CRISIS, FISCAL IMPACT, FISCAL MEASURES, FISCAL MULTIPLIERS, FISCAL POLICIES, FISCAL POLICY, FISCAL SHOCKS, FISCAL STIMULUS, GDP, GOVERNMENT CONSUMPTION, GOVERNMENT EXPENDITURE, GOVERNMENT EXPENDITURES, GOVERNMENT INVESTMENT, GOVERNMENT REVENUES, GOVERNMENT SPENDING, INCOME, INCOME TAX, INFLATION, INFORMAL SECTOR, INFRASTRUCTURE INVESTMENT, INTEREST RATE, INTERNATIONAL BANK, INTERNATIONAL MONETARY FUND, LIQUIDITY, LIQUIDITY CONSTRAINTS, MONETARY FUND, MONETARY POLICY, OUTPUT, PENSION, PENSION FUNDS, PRICE STABILITY, PRIVATE PENSION, PUBLIC EXPENDITURES, PUBLIC INVESTMENT, RETURN, SAFETY NET, SAFETY NETS, SAVINGS, SOCIAL SAFETY NET, SOCIAL SECURITY, TAX, TAX COLLECTION, TAX REVENUES, TIME DEPOSITS, TRANSMISSION MECHANISM, TREASURY,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100226102651 http://hdl.handle.net/10986/3707
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