How Sustainable are Latin American Fiscal Deficits: A Panel Data Approach

Serie

• Borradores de economía

Resumen

• This paper evaluates the fiscal sustainability hypothesis for eight Latin American countries, Argentina, Chile, Colombia, Ecuador, Panama, Peru, Paraguay and Uruguay, during the period 1960 - 2009. Using second generation cointegration panel data models, we test whether Government revenues and primary expenditures are sustainable in the long-run. This methodology allows for cross-sectional dependence among countries and is also appropriated under the existence of potential structural breaks. We found empirical evidence of sustainability of the primary deficit for these Latin American countries but only in a weak sense.

autores

• Campo Robledo, Jacobo
• Melo-Velandia, Luis Fernando

fecha de publicación

• 2011-11

Área temática

• C22 - Modelos de series temporales; Regresiones cuantiles dinámicas; Modelos dinámicos de tratamiento; procesos de difusión
• C23 - Modelos uniecuacionales; variables simples: Modelos con datos de panel; Modelos espacio-temporales
• H62 - Déficit; Superávit

Enfoque geográfico

• Argentina  Country
• Chile  Country
• Colombia  Country
• Ecuador  Country
• Panama  Country
• Paraguay  Country
• Peru  Country
• South America  Continent
• Uruguay  Country
• central America 

Líneas de investigación

• Change
• Fiscal Sustainability
• Panel Cointegration
• Panel Unit Root Tests
• Tests Structure

Identificador de objeto digital (DOI)

• https://doi.org/10.32468/be.679

Issue

• 679