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Fiscal Policy and National Saving in Mexico, 1980-2006

Author

Listed:
  • Rodolfo Cermeño

    (Centro de Investigación y Docencia Económicas, A. C.)

  • Bernardo D. Roth

    (Protego Evercore)

  • F. Alejandro Villagómez

    (Centro de Investigación y Docencia Económicas, A. C.
    Tecnológico de Monterrey, Campus Ciudad de México)

Abstract

This paper uses structural vector autoregression (SVAR) models to characterize the dynamic impact of fiscal policy on national saving. SVARs have extensively been used in case of monetary policy. Data adjusted for inflation, capital flight, the value loss of debt and cyclical effects, is used rather than traditional measures. Our results suggest that fiscal policy that increases the structural surplus has a positive impact on national saving, some negative impact on private savings in shorter horizons but any significant e_ect over longer horizons, and a negative effect on the output gap.

Suggested Citation

  • 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.
  • Handle: RePEc:emx:esteco:v:23:y:2008:i:2:p:281-312
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Francesco Grigoli & Alexander Herman & Klaus Schmidt-Hebbel, 2015. "Saving in Latin America and the Caribbean; Performance and Policies," IMF Working Papers 15/108, International Monetary Fund.
    2. Rodolfo Cermeño & F. Alejandro Villagómez & Javier Orellana Polo, 2012. "Monetary policy rules in a small open economy: an application to Mexico," Journal of Applied Economics, Universidad del CEMA, vol. 15, pages 259-286, November.
    3. Alejandro Villagómez & Juan Ignacio Hernández, 2009. "Monetary Policy Rules in a Small Open Economy: An Application to Mexico," Working papers DTE 454, CIDE, División de Economía.

    More about this item

    Keywords

    fiscal policy; national saving; private saving;

    JEL classification:

    • E29 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Other
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General

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