IS TIGHTER FISCAL POLICY EXPANSIONARY UNDER FISCAL DOMINANCE?: HYPERCROWDING OUT IN LATIN AMERICA
"Hypercrowding out occurs when fiscally dominated governments' domestic credit demands are so intrusive to a nation's financial system that a move toward fiscal surplus lowers interest rates and increases growth. We sample nine Latin American countries to test for these relationships. The impulse-response results of vector error correction models, six nations test positive for these two connections, suggesting market concern despite recent efforts toward fiscal balance." ("JEL" E430, E620, O230, O540) Copyright (c) 2009 Western Economic Association International.
Year of publication: |
2010
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Authors: | GRUBEN, WILLIAM C. ; WELCH, JOHN H. |
Published in: |
Contemporary Economic Policy. - Western Economic Association International - WEAI, ISSN 1074-3529. - Vol. 28.2010, 2, p. 171-181
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Publisher: |
Western Economic Association International - WEAI |
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