Sustainability of Latin American Fiscal Deficits: A Panel Data Approach

Jacobo Campo Robledo and Luis Melo-Velandia

No 9106, Borradores de Economia from Banco de la Republica

Abstract: This paper evaluates the fiscal sustainability hypothesis for eight Latin Americancountries for the period 1960 - 2009: Argentina, Chile, Colombia, Ecuador, Panama, Peru, Paraguayand Uruguay. Using second generation cointegration panel data models, we test whether governmentrevenues and primary expenditures are sustainable in the long run. This methodology allowsfor cross-sectional dependence among countries and is appropriate under the existence of potentialstructural breaks. We found empirical evidence of sustainability of the primary deficit for theseLatin American countries but only in a weak sense.

Keywords: Fiscal Sustainability; Panel Unit Root tests; Panel Cointegration tests; Structural Change. (search for similar items in EconPapers)
JEL-codes: C22 C23 H62 (search for similar items in EconPapers)
Pages: 16
Date: 2011-12-12
New Economics Papers: this item is included in nep-lam
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.banrep.gov.co/docum/ftp/borra679.pdf

Related works:
Journal Article: Sustainability of Latin American fiscal deficits: a panel data approach (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:col:000094:009106

Access Statistics for this paper

More papers in Borradores de Economia from Banco de la Republica
Bibliographic data for series maintained by Clorith Angelica Bahos Olivera ().