Estimating the Fiscal Multiplier in Argentina

Estimating the Fiscal Multiplier in Argentina

Argentina's government has resorted to fiscal policy as a countercyclical tool to mitigate the negative impact of the current economic downturn on aggregate demand. Empirical results based on a vector error correction model suggest, however, t...

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Bibliographic Details
Main Authors: Anos-Casero, Paloma, Cerdeiro, Diego, Trezzi, Riccardo
Format: Policy Research Working Paper
Language:English
Published: 2012
Subjects:
AGGREGATE DEMAND
AUCTION
AUTOREGRESSION
BIDS
BONDS
BORROWING
CAPITAL EXPENDITURES
CAPITAL REPATRIATION
COMMODITY
COMMODITY EXPORTS
CONSUMPTION INCREASES
CREDIT LINES
CREDITORS
DUMMY VARIABLES
ECONOMIC ACTIVITY
ECONOMIC DOWNTURN
ECONOMIC FLUCTUATIONS
ECONOMIC RESEARCH
ECONOMIC SLOWDOWN
ELASTICITY
EMERGING ECONOMIES
EMERGING-MARKET
EXPENDITURE
EXPENDITURE INCREASE
EXPENDITURES
EXPORTS
EXTERNAL SHOCKS
FINANCIAL CRISIS
FISCAL IMPACT
FISCAL MEASURES
FISCAL MULTIPLIERS
FISCAL POLICIES
FISCAL POLICY
FISCAL SHOCKS
FISCAL STIMULUS
GDP
GOVERNMENT CONSUMPTION
GOVERNMENT EXPENDITURE
GOVERNMENT EXPENDITURES
GOVERNMENT INVESTMENT
GOVERNMENT REVENUES
GOVERNMENT SPENDING
INCOME
INCOME TAX
INFLATION
INFORMAL SECTOR
INFRASTRUCTURE INVESTMENT
INTEREST RATE
INTERNATIONAL BANK
INTERNATIONAL MONETARY FUND
LIQUIDITY
LIQUIDITY CONSTRAINTS
MONETARY FUND
MONETARY POLICY
OUTPUT
PENSION
PENSION FUNDS
PRICE STABILITY
PRIVATE PENSION
PUBLIC EXPENDITURES
PUBLIC INVESTMENT
RETURN
SAFETY NET
SAFETY NETS
SAVINGS
SOCIAL SAFETY NET
SOCIAL SECURITY
TAX
TAX COLLECTION
TAX REVENUES
TIME DEPOSITS
TRANSMISSION MECHANISM
TREASURY
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100226102651
http://hdl.handle.net/10986/3707
Description
Summary:Argentina's government has resorted to fiscal policy as a countercyclical tool to mitigate the negative impact of the current economic downturn on aggregate demand. Empirical results based on a vector error correction model suggest, however, that the fiscal multiplier is relatively small and short-lived. This could reflect a number of factors, including the higher propensity of households to save during the economic downturn, the implementation lag of public expenditures, particularly of capital expenditures, and the narrow tax base that limits the impact of countercyclical revenue measures on domestic demand.

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