Economic Crisis and Fiscal Reforms in Latin America
AbstractThe recent financial crisis has initiated pressures for not only policy reform but also fundamental institutional fiscal reforms. This paper explores the connection between economic crises and fiscal institutional reforms in a region that has experienced plenty of both in recent years, namely Latin America. For that purpose it reviews the literature and provides five hypotheses about why, and under what circumstances, crises would promote reforms. The empirical evidence shows that debt crises make reforms more likely but banking crises on their own, if anything, reduce the pressure for fiscal institutional reforms. Political institutions are also important. If the electoral system encourages the personal vote, the country is more likely to reform. This evidence may become useful for predicting the likelihood of reforms in the developed world.
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Bibliographic InfoPaper provided by Inter-American Development Bank, Research Department in its series Research Department Publications with number 4697.
Date of creation: Jan 2011
Date of revision:
Information and communications technology; Education; Experimental design; Ecuador;
Find related papers by JEL classification:
- C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
- I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-02-05 (All new papers)
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.:
- Ranciere, Romain & Tornell, Aaron & Westermann, Frank, 2006.
"Decomposing the effects of financial liberalization: Crises vs. growth,"
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- Gabriel Filc & Carlos Scartascini, 2012. "Budgeting for results in Latin America: Conditions for its deployment and development," Research Department Publications 4787, Inter-American Development Bank, Research Department.
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