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Impacto del gasto público y la brecha fiscal sobre la actividad económica a nivel sectorial
[Impact of public spending and the fiscal gap on economic activity at the sector level]

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  • Frank, Luis

Abstract

The paper presents a first estimate of the elasticity of GVA with respect to public spending and financial gap (difference between tax revenues and public spending) at sectorial level. The results show a differential impact of an expansion of spending on each economic sector, being the most favored sectors construction and certain concomitant industrial branches, commerce and automotive production; while education and social and health services are the least favored. At an aggregate level, each percentage point of extra spending has an impact of 0.20% increase in economic activity; while each additional point of financial gap results in a 0.23% reduction of activity. This last figure, however, cannot be extrapolated to each financial instrument that constitutes de tha financial gap, including the inflation tax.

Suggested Citation

  • Frank, Luis, 2023. "Impacto del gasto público y la brecha fiscal sobre la actividad económica a nivel sectorial [Impact of public spending and the fiscal gap on economic activity at the sector level]," MPRA Paper 119111, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:119111
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    References listed on IDEAS

    as
    1. Bittencourt, Manoel, 2012. "Inflation and economic growth in Latin America: Some panel time-series evidence," Economic Modelling, Elsevier, vol. 29(2), pages 333-340.
    2. Jorge Puig, 2014. "Multiplicador del gasto público en Argentina," Económica, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata, vol. 60, pages 188-210, January-D.
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    More about this item

    Keywords

    public spending; fiscal gap; economic activity;
    All these keywords.

    JEL classification:

    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus

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