Sustainability of Latin American Fiscal Deficits: A Panel Data Approach
AbstractThis paper evaluates the fiscal sustainability hypothesis for eight Latin American countries for the period 1960 - 2009: Argentina, Chile, Colombia, Ecuador, Panama, Peru, Paraguay and Uruguay. Using second generation cointegration panel data models, we test whether government revenues and primary expenditures are sustainable in the long run. This methodology allows for cross-sectional dependence among countries and is appropriate under the existence of potential structural breaks. We found empirical evidence of sustainability of the primary deficit for these Latin American countries but only in a weak sense.
Download InfoIf 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.
Bibliographic InfoPaper provided by BANCO DE LA REPÚBLICA in its series BORRADORES DE ECONOMIA with number 009106.
Date of creation: 12 Dec 2011
Date of revision:
Contact details of provider:
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- António Afonso & Christophe Rault, 2008.
"What do we really Know about Fiscal Sustainability in the EU? A Panel Data Diagnostic,"
CESifo Working Paper Series
2226, CESifo Group Munich.
- António Afonso & Christophe Rault, 2010. "What do we really know about fiscal sustainability in the EU? A panel data diagnostic," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 145(4), pages 731-755, January.
- Afonso, António & Rault, Christophe, 2007. "What do we really know about fiscal sustainability in the EU? A panel data diagnostic," Working Paper Series 0820, European Central Bank.
- António Afonso & Christophe Rault, 2007. "What do we really know about fiscal sustainability in the EU? A panel data diagnostic," Working Papers hal-00322091, HAL.
- Christophe Rault & Antonio Alfonso, 2007. "What do we really know about fiscal sustainability in the EU? A panel data diagnostic," William Davidson Institute Working Papers Series wp893, William Davidson Institute at the University of Michigan.
- Antonio Afonso, 2004.
"Fiscal Sustainability: the Unpleasant European Case,"
Money Macro and Finance (MMF) Research Group Conference 2004
57, Money Macro and Finance Research Group.
- António Afonso, 2005. "Fiscal Sustainability: The Unpleasant European Case," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 61(1), pages 19-, March.
- Ignacio Lozano & Enrique Cabrera, .
"Una nota sobre la sostenibilidad fiscal y el nexo entre los ingresos y gastos del Gobierno Colombiano,"
Borradores de Economia
579, Banco de la Republica de Colombia.
- Ignacio Lozano & Enrique Cabrera, 2010. "Una nota sobre la sostenibilidad fiscal y el nexo entre los ingresos y gastos del Gobierno colombiano," Monetaria, Centro de Estudios Monetarios Latinoamericanos, vol. 0(2), pages 207-238, abril-jun.
- Ignacio Lozano & Enrique Cabrera, 2009. "Una nota sobre la sostenibilidad fiscal y el nexo entre los ingresos y gastos del Gobierno Colombiano," BORRADORES DE ECONOMIA 006126, BANCO DE LA REPÚBLICA.
- Chihwa Kao & Suzanne McCoskey, 1997.
"A Residual-Based Test Of The Null Of Cointegration In Panel Data,"
- Suzanne McCoskey & Chihwa Kao, 1998. "A residual-based test of the null of cointegration in panel data," Econometric Reviews, Taylor & Francis Journals, vol. 17(1), pages 57-84.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Norma Judith Paternina).
If references are entirely missing, you can add them using this form.