Sustainability of Latin American Fiscal Deficits: A Panel Data Approach

Serie

• Borradores de Economía

Resumen

• This paper evaluates the fiscal sustainability hypothesis for eight Latin Americancountries for the period 1960 - 2009: Argentina, Chile, Colombia, Ecuador, Panama, Peru, Paraguayand Uruguay. Using second generation cointegration panel data models, we test whether governmentrevenues and primary expenditures are sustainable in the long run. This methodology allowsfor cross-sectional dependence among countries and is appropriate under the existence of potentialstructural breaks. We found empirical evidence of sustainability of the primary deficit for theseLatin American countries but only in a weak sense.

autores

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

fecha de publicación

• 2011

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

• South America  Continent

Líneas de investigación

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

Issue

• 9106