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.
|Journal||Empirical Economics Letters, Vol. 10, No. 6, p. 597, June 2011|
|Publication status||Published - 20 Jan 2012|
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.