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Cyclical behavior of fiscal policy in Argentina: ¿Won decade or lost decade?
This paper analyses the relationship between Argentina's national public expenditure and its business cycle. It uses monthly time series from 1993. In order to capture probable fiscal-policy-cyclical-behavior improvement, as alleged by several other authors towards emerging countries, the two d...
This paper analyses the relationship between Argentina's national public expenditure and its business cycle. It uses monthly time series from 1993. In order to capture probable fiscal-policy-cyclical-behavior improvement, as alleged by several other authors towards emerging countries, the two decades of cyclical behavior is contrasted; starting from 1993 to 2002, and from 2003 onwards. It's found less procyclicality on total expenditure since 2003 though Argentina didn't achieve overcoming it. Capital expenditure's role is highlighted, since it could have been taken as a countercyclical tool during the last decade. A significant increase in government size is pointed out. However, the latter deserves a separate discussion.
