The Impact of Government Spending on the Duration and the Intensity of Economic Crises: Latin America 1900-2000

Rodrigo Cerda

No 365, Documentos de Trabajo from Instituto de Economia. Pontificia Universidad Católica de Chile.

Abstract: We study the role of fiscal expenditure during episodes of economic crises using one century data from 20 Latin American countries. We use output drops as way of indicating the irruption of economic crises and we are able to document episodes of large output drops and large duration of economic crises, which are characteristics that vary considerably among countries. We study the duration of crises by means of count data and hazard models while we study the intensity of the crisis by means of growth regressions. Our main findings suggest that fiscal expenditure has low power to shorten economic crises but it might act as an effective instrument to smooth output-drops during crises.

Keywords: Economic Crisis; fiscal expenditure; latin america (search for similar items in EconPapers)
JEL-codes: E62 H50 N16 (search for similar items in EconPapers)
Date: 2009
New Economics Papers: this item is included in nep-fdg, nep-his, nep-lam and nep-mac
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Citations: View citations in EconPapers (2)

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Related works:
Working Paper: The Impact of Government Spending on the Duration and the Intensity of Economic Crises: Latin America 1900-2000 (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:ioe:doctra:365

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