Public expenditure in Latin America: Trends and key policy issues

Clements, Benedict; Faircloth, Christopher A.; Verhoeven, Marijn

doi:10.18356/f1ada046-en

Cited by 18 publications

(19 citation statements)

References 17 publications

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“…However, the coefficient is no longer statistically significant after the inclusion of additional controls. As reported by Clements et al (), Dos Reis et al () and Suescún (), Latin American countries recorded acyclical fiscal policy behavior. Indeed, Cornia () explains that democratic governments still faced some problems, in the 2000s, in convincing people about the necessity to implement a prudent macroeconomic policy entailing a containment of public spending in good years.…”

Section: Empirical Test On the Cyclicality Of Fiscal Policysupporting

confidence: 55%

“…Starting from the empirical literature – see Gavin and Perotti (), Alesina et al., () and Clements et al. () on Latin America – we estimate the following model:

p r i m a r y_b a l a n c e_{i t} = {italicα}_{0} + {italicα}_{1} p r i m a r y_b a l a n c e_{i t - 1} + {italicα}_{2} o u t p u t_g a p_{i t} + {italicα}_{3} X_{i t} + u_{i t}

where i identifies the country while t the year. primary_balance represents the primary fiscal balance which is regressed on a set of independent variables.…”

Section: Empirical Test On the Cyclicality Of Fiscal Policymentioning

confidence: 99%

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Cyclicality of Fiscal Policy in Latin America over the period 1990 ‐ 2015

Martorano

2017

Review Development Economics

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Latin American countries experienced important changes in the 2000s. The implementation of fiscal reforms, public debt reduction and the high level of accumulated reserves gave them more policy space than in the past. As a result, Latin American countries were able to implement countercyclical policies to face the negative economic and social consequences associated with the recent macroeconomic shock. Some countries performed better than others. In particular, Social Democratic and Centrist governments enjoyed more fiscal space; they had realized larger budget surpluses over the good years and were able to cope with the crisis without impairing their fiscal conditions. Yet, Latin America has experienced a public finance deterioration in the most recent years. While governments are showing an increasing ability on taxation they are still facing some problems on the expenditure side. As a result, fiscal policy returned acyclical after the period of the crisis. The sustainability of public accounts may be strengthened increasing tax pressure on the richest, reducing tax evasion and improving current spending efficiency. However, the increasing political problems are putting many questions about future trends of public finance in the region.

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Section: Empirical Test On the Cyclicality Of Fiscal Policysupporting

confidence: 55%

“…Starting from the empirical literature – see Gavin and Perotti (), Alesina et al., () and Clements et al. () on Latin America – we estimate the following model:

p r i m a r y_b a l a n c e_{i t} = {italicα}_{0} + {italicα}_{1} p r i m a r y_b a l a n c e_{i t - 1} + {italicα}_{2} o u t p u t_g a p_{i t} + {italicα}_{3} X_{i t} + u_{i t}

where i identifies the country while t the year. primary_balance represents the primary fiscal balance which is regressed on a set of independent variables.…”

Section: Empirical Test On the Cyclicality Of Fiscal Policymentioning

confidence: 99%

Cyclicality of Fiscal Policy in Latin America over the period 1990 ‐ 2015

Martorano

2017

Review Development Economics

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“…It differs from Jaimovich and Panizza (2007), who find total public expenditures to be acyclical in developing countries in both good and bad times. 24 Using the output gap, Clements et al (2007) find that primary expenditures are procyclical only during bad times in Latin America. Education and health expenditures, on the other hand, are procyclical in good times but acyclical in 25 This result suggests that pro-cyclicality is triggered when real GDP growth is above potential.…”

Section: Estimation Resultsmentioning

confidence: 99%

“…12 These control variables have been used in several studies on fiscal cyclicality (e.g., Clements, Faircloth, & Verhoeven, 2007;Jaimovich & Panizza, 2007). The lagged fiscal balance captures the potential effect of borrowing constraints on public spending.…”

Section: The Empirical Strategy and Datamentioning

confidence: 99%

Is Social Spending Procyclical? Evidence for Developing Countries

2013

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“…Notwithstanding the reform efforts to curtail spending, Latin American countries routinely live with large deficits. The debt structure of countries throughout the region does not improve, with budget deficits actually worsening during the latter half of the 1990s and early 2000s and public debt averaging 44% of GDP (Clements, Faircloth, & Verhoeven, 2007).…”

Section: Fiscal Policy and Fiscal Outcomes In Latin Americamentioning

confidence: 99%

On the Economic Effects of Policy Responsiveness: The Role of Candidate Selection for General Elections

Mares

Alejandro²

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On the economic effects of policy responsiveness: The role of candidate selection for general elections.by Marco Alejandro Pérez Mares Claremont Graduate University: 2012Policy responsiveness to the demands of the whole is important because it is a determinant of growth and development: institutions that make governments more inclusive favor economic progress and factors that make governments more exclusive inhibit prosperity.Growth-enhancing policies likely to please the citizenry include policies that ensure the prevalence of the rule of law, policies that protect property and intellectual rights, and policies that foster competition, access and the perfection of markets. In contrast, growth-retarding policies likely to initiate from the representation efforts of politicians advancing narrow concerns include infringement on property rights, diffuse patent legislation, regulation to rise some price or wage, regulation blocking the entry into specific markets, official protection to monopolistic markets and adoption of legal barriers against international competition. If policy responsiveness to the interests of the whole favors economic affluence, whatpolitical institutions matter for the advancement of wide-encompassing interests through the policy making process? This dissertation examines the idea that the incentives provided by the intra-party candidate selection methods are crucial in order to understand the politicians' representation efforts. Expressly, increasing participation and democratization of the intra-party nomination process increase the incumbent's propensity to represent wide-encompassing interests and adopt policies that favor economic affluence. In contrast, elite-centered nomination methods decrease the incumbent's incentive to be politically responsive to the interests of the whole in favor of the representation of narrow concerns that often demand policies that benefit the group at the expense of overall economic growth.Empirically, the idea that aspirants to party tickets must first respond to the demands of those with the power to add their names to the electoral ballot finds robust support. In the developed world, candidate nomination appears largely informed by inclusive and democratic practices. Quite the opposite, in the less-developed world events of intraparty participatory politics are for the most part absent, with nomination decisions often monopolized by national party leaders and local party bosses.To my father, Angel Pérez Ochoa, M.D. Thanks dad! vi AcknowledgementsThere are many people I would like to thank greatly for helping me make this dissertation possible. My ideas, writing, and this finished product would not be the same without the enthusiastic guidance of my mentors Arthur Denzau, Thomas Borcherding, Darren Filson and Paul Zak. Thank you all, deeply, for the finest education, your encouragement in the early stages and your invaluable insights and advice through all stages of research and writing. This dissertation would certainly not be the same without your except...

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Public expenditure in Latin America: Trends and key policy issues

Cited by 18 publications

References 17 publications

Cyclicality of Fiscal Policy in Latin America over the period 1990 ‐ 2015

Cyclicality of Fiscal Policy in Latin America over the period 1990 ‐ 2015

Is Social Spending Procyclical? Evidence for Developing Countries

On the Economic Effects of Policy Responsiveness: The Role of Candidate Selection for General Elections

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