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Fiscal Policy and National Saving in Mexico, 1980-2006


  • Alejandro Villagómez

    () (Division of Economics, CIDE)

  • Bernardo Roth Rivero


This 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.

Suggested Citation

  • Alejandro Villagómez & Bernardo Roth Rivero, 2007. "Fiscal Policy and National Saving in Mexico, 1980-2006," Working papers DTE 387, CIDE, División de Economía.
  • Handle: RePEc:emc:wpaper:dte387

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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. 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.
    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


    Fiscal Policy; National Saving; Mexico;

    JEL classification:

    • O23 - Economic Development, Innovation, 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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