The Effectiveness of Fiscal Policy in Mexico

Hector E. Angulo-Rodriguez, Magda A. Castillo-Duran, Jorge Garza-Rodriguez, Monica Gonzalez-Hernandez and Ricardo Puente-Ortiz

MPRA Paper from University Library of Munich, Germany

Abstract: Using a VAR model with quarterly information for the 1980 to 2008 period, this paper studies the dynamic effects of fiscal policy on Gross Domestic Product in the Mexican economy. We find evidence of non–Keynesian effects of government expenditure on GDP in the short run. Also, we find evidence that government revenue has a significant impact on GDP only in the fourth quarter.

Keywords: Non-Keynesian effects; fiscal policy; fiscal consolidations; Mexico (search for similar items in EconPapers)
JEL-codes: E21 E62 E63 E65 (search for similar items in EconPapers)
Date: 2011-06
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Citations: View citations in EconPapers (1)

Published in The Empirical Economics Letters 10.6(2011): pp. 597-602

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:38717

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