Institutional Arrangements and Fiscal Performance: The Latin American Experience

24 Pages Posted: 20 Apr 2011

See all articles by Ernesto Stein

Ernesto Stein

Inter-American Development Bank (IDB)

Ernesto Talvi

Centro de Estudios de la Realidad Economica y Social (CERES)

Alejandro Grisanti

Inter-American Development Bank (IDB)

Multiple version iconThere are 2 versions of this paper

Date Written: February 1998

Abstract

This paper considers whether institutional factors, in this instance electoral systems and procedures, affect Latin American countries` fiscal performance as measured by the size of the public sector, fiscal deficits, the size of the public debt, and the degree of procyclality of fiscal policy. The authors find that electoral systems characterized by large district magnitude and high political fragmentation have larger governments, larger deficits, and more procyclical fiscal policies. Transparent and hierarchical budget procedures, on the other hand, lead to lower deficits and levels of debt.

Suggested Citation

Stein, Ernesto Hugo and Talvi, Ernesto and Grisanti, Alejandro, Institutional Arrangements and Fiscal Performance: The Latin American Experience (February 1998). IDB Working Paper No. 303. Available at SSRN: https://ssrn.com/abstract=1815994 or http://dx.doi.org/10.2139/ssrn.1815994

Ernesto Hugo Stein (Contact Author)

Inter-American Development Bank (IDB) ( email )

1300 New York Avenue, NW
Research Department
Washington, DC 20577
United States

Ernesto Talvi

Centro de Estudios de la Realidad Economica y Social (CERES) ( email )

Antonio Costa 3476
11300 Montevideo
Uruguay
(5982)628-7703 / 628 76 44 (Phone)
(5982)622-0526 (Fax)

Alejandro Grisanti

Inter-American Development Bank (IDB)

1300 New York Avenue NW
Washington, DC 20577
United States
Not Available (Phone)
Not Available (Fax)

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