Towards Effective Social Insurance in Latin America: The Importance of Countercyclical Fiscal Policy
Miguel Braun and
Luciano di Gresia
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Luciano di Gresia: Universidad Nacional de La Plata
Public Economics from University Library of Munich, Germany
Latin America is a volatile, crisis-prone region, with limited and inadequate social insurance. Therefore, the long-term as well as the recent poor suffer significantly during crises. Furthermore, social spending is procyclical in the region, but less so than total spending, indicating that the effectiveness of compensatory social policies designed to protect those vulnerable to crises is constrained by adjustments during recessions. The causes of procyclical fiscal policy lie in the political constraints on saving during expansions, combined with limited creditworthiness during recessions, and enhanced by economic volatility and a low share of automatic stabilizers in the budget.
JEL-codes: D6 D7 H (search for similar items in EconPapers)
Pages: 62 pages
Note: Type of Document - pdf; pages: 62
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Working Paper: Towards Effective Social Insurance in Latin America: The Importance of Countercyclical Fiscal Policy (2011)
Working Paper: Towards Effective Social Insurance in Latin America: The Importance of Countercyclical Fiscal Policy (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwppe:0410001
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