Public expenditures and debt at the subnational level: Evidence of fiscal smoothing from Argentina

Martin Besfamille, Nicolás Grosman, Diego Jorrat, Osmel Manzano Mazzali and Pablo Sanguinetti

No 1009, Research Department working papers from CAF Development Bank Of Latinamerica

Abstract: This paper uses the particular features of the tax-sharing regime Coparticipación Federal de Impuestos and the fact that some provinces earn hydrocarbon royalties to investigate public expenditures and debt at the subnational level in Argentina.We obtain that facing a one peso increase in intergovernmental transfers, provinces spend on average 36 cents in public expenditures with no changes in public debt. On the other hand, when royalties increase one peso, 59 cents are used to pay back public debt while public expenditures are not affected. These results, which are robust to many different specifications of the basic regressions, suggest a non-negligeable expenditure/debt smoothing behavior of Argentine provinces.

Keywords: Finanzas públicas; Investigación socioeconómica; Deuda pública; Gasto público (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-lam
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Citations: View citations in EconPapers (5)

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https://scioteca.caf.com/handle/123456789/1009

Related works:
Working Paper: Public Expenditures and Debt at the Subnational Level: Evidence of Fiscal Smoothing from Argentina (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:dbl:dblwop:1009

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