The structural budget balance: a preliminary estimation for Mexico

Jeronimo Pastor and Alejandro Villagomez

Applied Economics, 2007, vol. 39, issue 12, 1599-1607

Abstract: In this article we estimate the structural budget balance for Mexico from 1980 to 2003 using a variation of the methodology proposed by the International Monetary Fund. In addition, we propose a fiscal rule that limits deficits in the structural balance as a percentage of GDP, such as the ones used by the European Union and the Chilean Government amongst others. We also simulate what the conventional balance would have been for Mexico if such a rule would have been implemented in 1980.

Date: 2007
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DOI: 10.1080/00036840500447856

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