TURNING A BLIND EYE TO POLICY PRESCRIPTIONS: EXPLORING THE SOURCES OF PROCYCLICAL FISCAL BEHAVIOR AT THE SUBNATIONAL LEVEL
This paper analyses the fiscal behavior of subnational districts in Argentina over the business cycle. I address two questions. Is the fiscal policy of Argentine districts procyclical? If so, what is the theory that best explains procyclicality? The answers come from the estimation of an error cor...
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| Formato: | Artículo |
| Lenguaje: | Inglés |
| Publicado: |
Public Finance and Management
2022
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| Acceso en línea: | https://ridunt.unt.edu.ar/handle/123456789/97 |
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| Sumario: | This paper analyses the fiscal behavior of subnational districts in Argentina over the
business cycle. I address two questions. Is the fiscal policy of Argentine districts procyclical?
If so, what is the theory that best explains procyclicality? The answers come from the estimation of an error correction model of a panel that spans 23 years and 24 districts. I found that
all categories of public expenditures, except for capital expenditures, were procyclical. The
main sources of procyclicality are the political networks, changes in the amount of oil, gas
and mining grants, federal interventions, and discretionary intergovernmental transfers. |
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