TY  - JOUR
AU  - Stein,Ernesto
AU  - Talvi,Ernesto
AU  - Grisanti,Alejandro
TI  - Institutional Arrangements and Fiscal Performance: The Latin American Experience
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6358
PY  - 1998
Y2  - January 1998
UR  - http://www.nber.org/papers/w6358
L1  - http://www.nber.org/papers/w6358.pdf
N1  - Author contact info:
Ernesto Stein
Kennedy School of Government
Littauer Bldg
79 J F Kennedy Street
Cambridge, MA 02138
E-Mail: ernestos@iadb.org

Ernesto Talvi

Alejandro Grisanti
M1  - published as Ernesto Stein, Ernesto Talvi, Alejandro Grisanti. "Institutional Arrangements and Fiscal Performance: The Latin American Experience," in James M. Poterba and Jürgen von Hagen, editors, "Fiscal Institutions and Fiscal Performance" University of Chicago Press (1999)

AB  - This paper explores the links between institutional arrangements and fiscal performance in" Latin America.  We consider four measures of fiscal performance, namely expenditures, the size of fiscal deficits and debt, and the response of fiscal policy to business" fluctuations; and two institutional dimensions, namely, electoral systems and budgetary processes. " We find evidence that electoral systems characterized by a large degree of proportionality large district magnitude, tend to have larger governments, larger deficits and a more procyclical" response to the business cycle.  We also find that more transparent and hierarchical budgetary" procedures lead to lower deficits and debt.  Contrary to the findings of Hallerberg and von Hagen" for European countries, we find no evidence that centralized budgetary arrangements neutralize the" potentially adverse impact on fiscal deficits of a larger degree of proportionality of the electoral" system.
ER  -