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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]

Author

Listed:
  • 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
    as

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    References listed on IDEAS

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

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    JEL classification:

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

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