The Effectiveness of Fiscal Policy in Mexico

Angulo-Rodriguez, Hector E. and Castillo-Duran, Magda A. and Garza-Rodriguez, Jorge and Gonzalez-Hernandez, Monica and Puente-Ortiz, Ricardo (2011): The Effectiveness of Fiscal Policy in Mexico. Published in: The Empirical Economics Letters , Vol. 6, No. 10 (June 2011): pp. 597-602.

Abstract

Using a VAR model with quarterly information for the 1980 to 2008 period, this paper studies the dynamic effects of fiscal policy on Gross Domestic Product in the Mexican economy. We find evidence of non–Keynesian effects of government expenditure on GDP in the short run. Also, we find evidence that government revenue has a significant impact on GDP only in the fourth quarter.

• Item Type: MPRA Paper
• Language: English
• Keywords: Non-Keynesian effects; fiscal policy; fiscal consolidations; Mexico
• Subjects: E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E21 - Consumption ; Saving ; Wealth; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E62 - Fiscal Policy; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E63 - Comparative or Joint Analysis of Fiscal and Monetary Policy ; Stabilization ; Treasury Policy; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E65 - Studies of Particular Policy Episodes

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