Advanced Search
MyIDEAS: Login to save this article or follow this journal

¿Puede una expansión fiscal ser contractiva? La efectividad de la política fiscal y la sostenibilidad de la deuda pública


Author Info

  • Waldo Mendoza

    (Pontificia Universidad Católica del Perú - Departamento de economía)


This paper presents a Keynesian effective demand model that reproduces expansive or contractive effects of an expansionary fiscal policy as a function of the initial conditions of the public finances. In an economy with fiscal slack, when observed primary surplus is above the optimal fiscal surplus level, expansive fiscal policy raises the level of economic activity. However, when there is no fiscal slackness, when the observed surplus is below the optimal surplus, a fiscal expansion may contract the level of economic activity. The outcome has implications for the debate about whether fiscal policy should be countercyclical or not. In the aforementioned scenery the countercyclical policy is appropriate only when there is fiscal slackness, but it is counterproductive, would aggravate the recession instead of ameliorating it, whenever at the initial point the observed fiscal surplus is below the optimal surplus level.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL:
Download Restriction: no

Bibliographic Info

Article provided by Departamento de Economía - Pontificia Universidad Católica del Perú in its journal Revista Economía.

Volume (Year): (2007)
Issue (Month): 59-60 ()
Pages: 247-279

as in new window
Handle: RePEc:pcp:pucrev:y:2007:i:59-60:p:247-279

Contact details of provider:
Postal: Av. Universitaria 1801, San Miguel, Lima, Perú
Phone: (511) 626-2000 ext. 4950, 4951
Fax: (511) 626-2874
Web page:
More information through EDIRC

Related research

Keywords: Fiscal policy; sustainability; countercyclical policy; public finances;

Other versions of this item:


No references listed on IDEAS
You can help add them by filling out this form.



This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


Access and download statistics


When requesting a correction, please mention this item's handle: RePEc:pcp:pucrev:y:2007:i:59-60:p:247-279. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Stephan Gruber).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.