Budget Institutions and Fiscal Performance in Latin America
Alberto Alesina, Ricardo Hausmann, Rudolf Hommes, Ernesto Stein
In this paper we collect detailed information on the budget institutions of Latin American countries. We classify these institutions on a `hierarchical'/'collegial' scale, as a function of their transparency and the existence of legislative constraints on the deficit. We then show that `hierarchical' and transparent procedures have been associated with more fiscal discipline in Latin America in the eighties and early nineties.
Published: Journal of Development Economics, Vol. 59, no. 2 (August 1999): 253-273.