How Do Subnational Governments React to Shocks to Different Revenue Sources? Evidence from Hydrocarbon-Producing Provinces in Argentina

Martín Besfamille, Diego Jorrat, Osmel Manzano Mazzali, Bernardo Quiroga, Pablo Sanguinetti and Martin Besfamille
Authors registered in the RePEc Author Service: Martin Besfamille

No 9251, CESifo Working Paper Series from CESifo

Abstract: Based on the fiscal regime that prevailed in Argentina from 1988 to 2003, we estimate the effects of changes in intergovernmental transfers and hydrocarbon royalties on provincial public consumption and debt. Whenever intergovernmental transfers increase, all provinces primarily increase public consumption and, to a lesser extent, decrease their debt. However, when hydrocarbon-producing provinces experienced an increase in royalties, they saved the entire increase. We provide evidence that the exhaustible nature of royalties may explain this saving reaction in hydrocarbon-producing provinces.

Keywords: intergovernmental transfers; non-renewable resources; hydrocarbon royalties; provincial public consumption and debt; Argentina; Bartik instruments (search for similar items in EconPapers)
JEL-codes: C30 H72 H77 (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-isf, nep-lam and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Journal Article: How do subnational governments react to shocks to different revenue sources? Evidence from hydrocarbon-producing provinces in Argentina (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_9251

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