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Public Debt: Its Relationship with Public Expenditure and Election Periods. An Approach to Latin America 1993-2018

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Listed:
  • Edison Javier Jiménez López

    (Universidad Autónoma de Baja California)

  • Kathia Cristina Cruz Terrazas

    (Secretaría de Educación de Baja California)

Abstract

A significant increase in the amount of public debt in Latin America has been seen in recent years. Using the methodology of feasible generalized least squares for panel data, this article found that the public expenditure, the real exchange rate, the price index and imports are the main contributors to the accumulation of debt. Although it is possible to check that government expenditure is the biggest trigger, it also shows that periods of presidential elections were a significant factor in the formation of public debt in Latin American countries.

Suggested Citation

  • Edison Javier Jiménez López & Kathia Cristina Cruz Terrazas, 2024. "Public Debt: Its Relationship with Public Expenditure and Election Periods. An Approach to Latin America 1993-2018," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 101, pages 173-201, March.
    • Handle: RePEc:lde:journl:y:2024:i:101:p:173-201
    DOI: 10.17533/udea.le.n101a352256
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    References listed on IDEAS

    as
    1. Brender, Adi & Drazen, Allan, 2005. "Political budget cycles in new versus established democracies," Journal of Monetary Economics, Elsevier, vol. 52(7), pages 1271-1295, October.
    2. Robert Solomon, 1977. "A Perspective on the Debt of Deveoloping Countries," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 8(2), pages 479-510.
    3. Kenneth Rogoff & Anne Sibert, 1988. "Elections and Macroeconomic Policy Cycles," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 55(1), pages 1-16.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

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    JEL classification:

    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

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