The Effectiveness of Fiscal Policy in Mexico

Empirical Economics Letters, Vol. 10, No. 6, p. 597, June 2011

6 Pages Posted: 20 Jan 2012

See all articles by Jorge Garza-Rodriguez

Jorge Garza-Rodriguez

Universidad de Monterrey

Héctor Emilio Angulo

affiliation not provided to SSRN

Magda A. Castillo-Duran

Universidad de Monterrey (UDEM)

Monica G. Gonzalez-Hernandez

Universidad de Monterrey (UDEM)

Ricardo Puente-Ortiz

Universidad de Monterrey (UDEM)

Date Written: June 1, 2011

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

JEL Classification: E21, E62, E63, E65

Suggested Citation

Garza-Rodriguez, Jorge and Angulo, Héctor Emilio and Castillo-Duran, Magda A. and Gonzalez-Hernandez, Monica G. and Puente-Ortiz, Ricardo, The Effectiveness of Fiscal Policy in Mexico (June 1, 2011). Empirical Economics Letters, Vol. 10, No. 6, p. 597, June 2011 . Available at SSRN: https://ssrn.com/abstract=1988473

Jorge Garza-Rodriguez (Contact Author)

Universidad de Monterrey ( email )

venida Ignacio Morones Prieto 4500 Pte
San Pedro, 66238
Mexico

Héctor Emilio Angulo

affiliation not provided to SSRN ( email )

Magda A. Castillo-Duran

Universidad de Monterrey (UDEM) ( email )

Av. Morones Prieto 4500 Pte.
Monterrey, Nuevo León 66238
Mexico

Monica G. Gonzalez-Hernandez

Universidad de Monterrey (UDEM) ( email )

Av. Morones Prieto 4500 Pte.
Monterrey, Nuevo León 66238
Mexico

Ricardo Puente-Ortiz

Universidad de Monterrey (UDEM) ( email )

Av. Morones Prieto 4500 Pte.
Monterrey, Nuevo León 66238
Mexico

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