How pro-cyclical is the fiscal policy of Argentine provinces? Evidence for the period 1998- 2017
This paper provides evidence on the fiscal policy prociclicality of Argentina's subnational districts. I estimate an error correction model using a panel spanning 20 years (1998 – 2017) and all 24 districts. I find that fiscal policy of subnational jurisdictions is procyclical in all main categ...
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| Format: | Online |
| Language: | spa |
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Facultad de Ciencias Económicas. Instituto de Economía y Finanzas
2021
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| Online Access: | https://revistas.unc.edu.ar/index.php/acteconomica/article/view/32919 |
| _version_ | 1811172332080726016 |
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| author | Meloni, Osvaldo |
| author_facet | Meloni, Osvaldo |
| author_sort | Meloni, Osvaldo |
| collection | Portal de Revistas |
| description | This paper provides evidence on the fiscal policy prociclicality of Argentina's subnational districts. I estimate an error correction model using a panel spanning 20 years (1998 – 2017) and all 24 districts. I find that fiscal policy of subnational jurisdictions is procyclical in all main categories of public expenditure and tax revenue except for automatic transfers, which have no statistical significance. The response of spending to the contemporary growth of the economic activity is greater than that estimated by Meloni (2018) for the period 1985-2007, similar to the ones obtained by Abbott et al. (2015) for Mexican states and lower than Arena and Revilla (2009) for Brazilian states. My estimates confirm that total resources are also procyclical with discretionary transfers being the most procyclically. |
| format | Online |
| id | oai:ojs.revistas.unc.edu.ar:article-32919 |
| institution | Universidad Nacional de Cordoba |
| language | spa |
| publishDate | 2021 |
| publisher | Facultad de Ciencias Económicas. Instituto de Economía y Finanzas |
| record_format | ojs |
| spelling | oai:ojs.revistas.unc.edu.ar:article-329192022-08-22T02:53:34Z How pro-cyclical is the fiscal policy of Argentine provinces? Evidence for the period 1998- 2017 ¿Cuán procíclica es la política fiscal de las provincias argentinas? Evidencia para el periodo 1998- 2017 Meloni, Osvaldo fiscal policy pro-cyclicality Argentina política fiscal prociclicidad Argentina This paper provides evidence on the fiscal policy prociclicality of Argentina's subnational districts. I estimate an error correction model using a panel spanning 20 years (1998 – 2017) and all 24 districts. I find that fiscal policy of subnational jurisdictions is procyclical in all main categories of public expenditure and tax revenue except for automatic transfers, which have no statistical significance. The response of spending to the contemporary growth of the economic activity is greater than that estimated by Meloni (2018) for the period 1985-2007, similar to the ones obtained by Abbott et al. (2015) for Mexican states and lower than Arena and Revilla (2009) for Brazilian states. My estimates confirm that total resources are also procyclical with discretionary transfers being the most procyclically. Este trabajo proporciona evidencia sobre la prociclidad de política fiscal de los distritos subnacionales argentinos. Estimo un modelo de corrección de errores utilizando un panel que abarca 20 años (1998 – 2017) y los 24 distritos. Encuentro que la política fiscal de las jurisdicciones subnacionales es procíclica en todas las grandes categorías de gasto público y también en todos los rubros más importantes de los ingresos fiscales a excepción de las transferencias automáticas, que no tienen significación estadística. La respuesta del gasto al crecimiento contemporáneo en el nivel de actividad es mayor que la estimada por Meloni (2018) para el lapso 1985-2007, similar a la obtenida por Abbott et al. (2015) para los estados mejicanos y un poco menor a la encontrada por Arena y Revilla (2009) para los estados brasileños. Mis estimaciones también confirman que los recursos totales son procíclicos siendo las transferencias discrecionales el rubro con mayor grado de prociclidadad. Facultad de Ciencias Económicas. Instituto de Economía y Finanzas 2021-05-01 info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion ADI ADI application/pdf https://revistas.unc.edu.ar/index.php/acteconomica/article/view/32919 Actualidad Económica; Vol. 31 No. 103 (2021): January-April; 33-42 Actualidad Económica; Vol. 31 Núm. 103 (2021): Enero - Abril; 33-42 2250-754X 0327-585X spa https://revistas.unc.edu.ar/index.php/acteconomica/article/view/32919/33537 https://creativecommons.org/licenses/by-nc-nd/4.0 |
| spellingShingle | fiscal policy pro-cyclicality Argentina política fiscal prociclicidad Argentina Meloni, Osvaldo How pro-cyclical is the fiscal policy of Argentine provinces? Evidence for the period 1998- 2017 |
| title | How pro-cyclical is the fiscal policy of Argentine provinces? Evidence for the period 1998- 2017 |
| title_alt | ¿Cuán procíclica es la política fiscal de las provincias argentinas? Evidencia para el periodo 1998- 2017 |
| title_full | How pro-cyclical is the fiscal policy of Argentine provinces? Evidence for the period 1998- 2017 |
| title_fullStr | How pro-cyclical is the fiscal policy of Argentine provinces? Evidence for the period 1998- 2017 |
| title_full_unstemmed | How pro-cyclical is the fiscal policy of Argentine provinces? Evidence for the period 1998- 2017 |
| title_short | How pro-cyclical is the fiscal policy of Argentine provinces? Evidence for the period 1998- 2017 |
| title_sort | how pro cyclical is the fiscal policy of argentine provinces evidence for the period 1998 2017 |
| topic | fiscal policy pro-cyclicality Argentina política fiscal prociclicidad Argentina |
| topic_facet | fiscal policy pro-cyclicality Argentina política fiscal prociclicidad Argentina |
| url | https://revistas.unc.edu.ar/index.php/acteconomica/article/view/32919 |
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