Sustainability of Latin American fiscal deficits : a panel data approach

Number: 
679
Published: 
Classification JEL: 
C22, C23, H62
Keywords: 
Human capital agglomeration, Social returns, Private returns, Externalities, Uncertainty, Fiscal policy

This paper evaluates the fiscal sustainability hypothesis for eight Latin American countries for the period 1960 - 2009: Argentina, Chile, Colombia, Ecuador, Panama, Peru, Paraguay and Uruguay. Using second generation cointegration panel data models, we t