Munich Personal RePEc Archive

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.

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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.

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