Fiscal Policy and National Saving in Mexico, 1980-2006
AbstractThis paper uses structural vector autoregressions (SVAR) to characterize the dynamic impact of fiscal policy on national saving. SVAR´s have extensively been used to characterize the impact of monetary policy on the economy but have not been applied as much to analyzing fiscal policy. This paper focuses on the impact of fiscal policy on national saving and the data used is adjusted for inflation and cyclical effects, rather than using traditional estimations by official entities. Our empirical analysis shows that fiscal policy has an important economic impact on national saving, any impact on private saving and a negative but non-significant effect on the output gap.
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Bibliographic InfoPaper provided by CIDE, Division de Economia in its series Documentos de Trabajo with number DTE 387.
Length: 27 pages
Date of creation: Jun 2007
Date of revision:
Fiscal Policy; National Saving; Mexico;
Other versions of this item:
- Rodolfo Cermeño & Bernardo D. Roth & F. Alejandro Villagómez, 2008. "Fiscal Policy and National Saving in Mexico, 1980-2006," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 23(2), pages 281-312.
- O23 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development
- E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
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