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Fiscal Policy and National Saving in Mexico, 1980-2006

  • 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)

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.

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File URL: http://codex.colmex.mx:8991/exlibris/aleph/a18_1/apache_media/8163UD4G34QCG3H296NEA72QL35FCJ.pdf
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Article provided by El Colegio de México, Centro de Estudios Económicos in its journal Estudios Económicos.

Volume (Year): 23 (2008)
Issue (Month): 2 ()
Pages: 281-312

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Handle: RePEc:emx:esteco:v:23:y:2008:i:2:p:281-312
Contact details of provider: Web page: http://www.colmex.mx/centros/cee/

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  11. van Wijnbergen, Sweder, 1991. "Debt Relief and Economic Growth in Mexico," World Bank Economic Review, World Bank Group, vol. 5(3), pages 437-55, September.
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