The Effectiveness of Fiscal Policy in Mexico

Jorge Garza-Rodriguez, Héctor Emilio Angulo, Magda A. Castillo-Duran, Monica G. Gonzalez-Hernandez, Ricardo Puente-Ortiz

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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.
Original languageEnglish
JournalEmpirical Economics Letters, Vol. 10, No. 6, p. 597, June 2011
Publication statusPublished - 20 Jan 2012

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Garza-Rodriguez, J., Angulo, H. E., Castillo-Duran, M. A., Gonzalez-Hernandez, M. G., & Puente-Ortiz, R. (2012). The Effectiveness of Fiscal Policy in Mexico. Empirical Economics Letters, Vol. 10, No. 6, p. 597, June 2011.