Fiscal policy and private investment: latin america in a comparative perspective
The main objective of the paper is to assess the impact of fiscal variables on private investment comparing some Latin-American economies to other advanced ones. For such purposes, the authors carry out an econometric analysis for the period 1990-2008. They make use of two dynamic panel models in wh...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Editora 34
2012-06-01
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| Series: | Brazilian Journal of Political Economy |
| Subjects: | |
| Online Access: | http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572012000200006&lng=en&tlng=en |
| _version_ | 1818141863543046144 |
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| author | Emilio Caballero U. Julio López G. |
| author_facet | Emilio Caballero U. Julio López G. |
| author_sort | Emilio Caballero U. |
| collection | DOAJ |
| description | The main objective of the paper is to assess the impact of fiscal variables on private investment comparing some Latin-American economies to other advanced ones. For such purposes, the authors carry out an econometric analysis for the period 1990-2008. They make use of two dynamic panel models in which they group countries with similar characteristics and development levels. In one of them, they include Mexico, Brazil, Chile, Colombia and Uruguay; whereas in the second one the countries accounted for are the U.S., Canada, Spain, Korea, Ireland and Japan. They specify in both models an investment function using as arguments a wide range of variables, including those related with fiscal policy. From their results the authors infer that governments can, with higher spending, boost up the economy even when they finance spending with higher taxes. In Latin America, where income concentration is enormous, a proposal to boost up the economy through higher government expenditure financed with a progressive income tax, is even more justified. |
| first_indexed | 2024-12-11T11:06:38Z |
| format | Article |
| id | doaj.art-311222f5d1e442d3915c388291278b81 |
| institution | Directory Open Access Journal |
| issn | 1809-4538 |
| language | English |
| last_indexed | 2024-12-11T11:06:38Z |
| publishDate | 2012-06-01 |
| publisher | Editora 34 |
| record_format | Article |
| series | Brazilian Journal of Political Economy |
| spelling | doaj.art-311222f5d1e442d3915c388291278b812022-12-22T01:09:41ZengEditora 34Brazilian Journal of Political Economy1809-45382012-06-0132224125910.1590/S0101-31572012000200006S0101-31572012000200006Fiscal policy and private investment: latin america in a comparative perspectiveEmilio Caballero U.Julio López G.The main objective of the paper is to assess the impact of fiscal variables on private investment comparing some Latin-American economies to other advanced ones. For such purposes, the authors carry out an econometric analysis for the period 1990-2008. They make use of two dynamic panel models in which they group countries with similar characteristics and development levels. In one of them, they include Mexico, Brazil, Chile, Colombia and Uruguay; whereas in the second one the countries accounted for are the U.S., Canada, Spain, Korea, Ireland and Japan. They specify in both models an investment function using as arguments a wide range of variables, including those related with fiscal policy. From their results the authors infer that governments can, with higher spending, boost up the economy even when they finance spending with higher taxes. In Latin America, where income concentration is enormous, a proposal to boost up the economy through higher government expenditure financed with a progressive income tax, is even more justified.http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572012000200006&lng=en&tlng=enLatin Americafiscal policymacroeconomic model |
| spellingShingle | Emilio Caballero U. Julio López G. Fiscal policy and private investment: latin america in a comparative perspective Brazilian Journal of Political Economy Latin America fiscal policy macroeconomic model |
| title | Fiscal policy and private investment: latin america in a comparative perspective |
| title_full | Fiscal policy and private investment: latin america in a comparative perspective |
| title_fullStr | Fiscal policy and private investment: latin america in a comparative perspective |
| title_full_unstemmed | Fiscal policy and private investment: latin america in a comparative perspective |
| title_short | Fiscal policy and private investment: latin america in a comparative perspective |
| title_sort | fiscal policy and private investment latin america in a comparative perspective |
| topic | Latin America fiscal policy macroeconomic model |
| url | http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572012000200006&lng=en&tlng=en |
| work_keys_str_mv | AT emiliocaballerou fiscalpolicyandprivateinvestmentlatinamericainacomparativeperspective AT juliolopezg fiscalpolicyandprivateinvestmentlatinamericainacomparativeperspective |