lynx   »   [go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/ioe/clabwp/1.html
   My bibliography  Save this paper

The Impact of Government Spending on the Duration and the Intensity of Economic Crises: Latin America 1900-2000

Author

Listed:
  • Rodrigo Cerda

    (Instituto de Economía. Pontificia Universidad Católica de Chile.)

Abstract
We study the role of fiscal expenditure during episodes of economic crises using one century data from 20 Latin American countries. We use output drops as a way of indicating the irruption of economic crises and we are able to document episodes of large output drops and large duration of economic crises, which are the characteristics that vary considerably among countries. We study the duration of crises by means of count data and hazard models while we study the intensity of the crisis by means of growth regressions. Our main finding suggest that fiscal expenditure has low power to shorten economic crises but it might act as an effective instrument to smooth output-drops during crises.

Suggested Citation

  • Rodrigo Cerda, 2009. "The Impact of Government Spending on the Duration and the Intensity of Economic Crises: Latin America 1900-2000," Working Papers ClioLab 1, EH Clio Lab. Instituto de Economía. Pontificia Universidad Católica de Chile.
    • Handle: RePEc:ioe:clabwp:1
    as

    Download full text from publisher

    File URL: http://cliolab.economia.uc.cl/docs/wp/wp_01.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Miriam Bruhn & Francisco A. Gallego, 2012. "Good, Bad, and Ugly Colonial Activities: Do They Matter for Economic Development?," The Review of Economics and Statistics, MIT Press, vol. 94(2), pages 433-461, May.
    2. César Calderón & Klaus Schmidt-Hebbel, 2008. "Openness and Growth Volatility," Working Papers Central Bank of Chile 483, Central Bank of Chile.
    3. Francisco A. Gallego, 2010. "Historical Origins of Schooling: The Role of Democracy and Political Decentralization," The Review of Economics and Statistics, MIT Press, vol. 92(2), pages 228-243, May.
    4. Francisco Gallego & Robert Woodberry, 2008. "Christian Missionaries and Education in Former Colonies: How Institutions Mattered," Documentos de Trabajo 339, Instituto de Economia. Pontificia Universidad Católica de Chile..
    5. Francisco A. Gallego & Robert Woodberry, 2010. "Christian Missionaries and Education in Former African Colonies: How Competition Mattered," Journal of African Economies, Centre for the Study of African Economies, vol. 19(3), pages 294-329, June.
    6. Rodrigo Cerda., 2009. "The Impact of Government Spending on the Duration and the Intensity of Economic Crises: Latin America 1900-2000," Documentos de Trabajo 365, Instituto de Economia. Pontificia Universidad Católica de Chile..
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rodrigo Cerda., 2009. "The Impact of Government Spending on the Duration and the Intensity of Economic Crises: Latin America 1900-2000," Documentos de Trabajo 365, Instituto de Economia. Pontificia Universidad Católica de Chile..
    2. Pappas, Vasileios & Ingham, Hilary & Izzeldin, Marwan & Steele, Gerry, 2016. "Will the crisis “tear us apart”? Evidence from the EU," International Review of Financial Analysis, Elsevier, vol. 46(C), pages 346-360.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Daron Acemoglu & Francisco A. Gallego & James A. Robinson, 2014. "Institutions, Human Capital, and Development ," Annual Review of Economics, Annual Reviews, vol. 6(1), pages 875-912, August.
    2. Amélie Allegre & Oana Borcan & Christa Brunnschweiler & Christa N. Brunnschweiler, 2025. "Gendered Impacts of Colonial Education: The Role of Access and Norms Transmission in French Morocco," CESifo Working Paper Series 11725, CESifo.
    3. Dimico, Arcangelo, 2014. "Poverty trap and educational shock: Evidence from missionary fields," QUCEH Working Paper Series 14-07, Queen's University Belfast, Queen's University Centre for Economic History.
    4. Amelie Allegre & Oana Borcan & Christa Brunnschweiler, 2025. "Gendered Impacts of Colonial Education: the Role of Access and Norms Transmission in French Morocco," University of East Anglia School of Economics Working Paper Series 2025-02, School of Economics, University of East Anglia, Norwich, UK..
    5. Musacchio, Aldo & Fritscher, André Martínez & Viarengo, Martina, 2014. "Colonial Institutions, Trade Shocks, and the Diffusion of Elementary Education in Brazil, 1889–1930," The Journal of Economic History, Cambridge University Press, vol. 74(3), pages 730-766, September.
    6. Daniel Oto-Peralías & Diego Romero-Ávila, 2016. "The economic consequences of the Spanish Reconquest: the long-term effects of Medieval conquest and colonization," Journal of Economic Growth, Springer, vol. 21(4), pages 409-464, December.
    7. Priyaranjan Jha & Karan Talathi, 2024. "Impact of Colonial Institutions on Economic Growth and Development in India: Evidence from Night-Lights Data," Economic Development and Cultural Change, University of Chicago Press, vol. 72(4), pages 1653-1708.
    8. Wietzke, Frank-Borge, 2015. "Long-Term Consequences of Colonial Institutions and Human Capital Investments: Sub-National Evidence from Madagascar," World Development, Elsevier, vol. 66(C), pages 293-307.
    9. Amélie Allegre & Oana Borcan & Christa Brunnschweiler, 2025. "Gendered Impacts of Colonial Education: the Role of Access and Norms Transmission in French Morocco," Working Paper Series 20225, Department of Economics, Norwegian University of Science and Technology.
    10. Blanco, Luisa & Grier, Robin, 2012. "Natural resource dependence and the accumulation of physical and human capital in Latin America," Resources Policy, Elsevier, vol. 37(3), pages 281-295.
    11. Maximiliano Marzetti & Rok Spruk, 2023. "Long-Term Economic Effects of Populist Legal Reforms: Evidence from Argentina," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 65(1), pages 60-95, March.
    12. Broich, Tobias, 2017. "Do authoritarian regimes receive more Chinese development finance than democratic ones? Empirical evidence for Africa," China Economic Review, Elsevier, vol. 46(C), pages 180-207.
    13. Bobonis, Gustavo J. & Morrow, Peter M., 2014. "Labor coercion and the accumulation of human capital," Journal of Development Economics, Elsevier, vol. 108(C), pages 32-53.
    14. Rok Spruk & Mitja Kovac, 2018. "Inefficient Growth," Review of Economics and Institutions, Università di Perugia, vol. 9(2).
    15. Sanghamitra Bandyopadhyay & Elliott Green, 2016. "Precolonial Political Centralization and Contemporary Development in Uganda," Economic Development and Cultural Change, University of Chicago Press, vol. 64(3), pages 471-508.
    16. Okoye, Dozie & Pongou, Roland & Yokossi, Tite, 2017. "On the Dispensability of New Transportation Technologies: Evidence from the Heterogeneous Impact of Railroads in Nigeria," MPRA Paper 77293, University Library of Munich, Germany.
    17. Hugo J. Faria & Leonor Filardo, 2015. "Venezuela: Without Liberals, There Is No Liberalism," Econ Journal Watch, Econ Journal Watch, vol. 12(3), pages 375–399-3, September.
    18. Luciano Nakabashi & Ana Elisa Pereira, 2023. "Factors of production, productivity, institutions, and development: Evidence from Brazil," Review of Development Economics, Wiley Blackwell, vol. 27(2), pages 1034-1055, May.
    19. Remi Jedwab & Felix Meier zu Selhausen & Alexander Moradi, 2022. "The economics of missionary expansion: evidence from Africa and implications for development," Journal of Economic Growth, Springer, vol. 27(2), pages 149-192, June.
    20. Becker, Sascha O. & Pfaff, Steven & Rubin, Jared, 2016. "Causes and consequences of the Protestant Reformation," Explorations in Economic History, Elsevier, vol. 62(C), pages 1-25.

    More about this item

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • N16 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Latin America; Caribbean

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ioe:clabwp:1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jaime Casassus (email available below). General contact details of provider: https://edirc.repec.org/data/iepuccl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.
    Лучший частный хостинг