Effect of public expenditure on private expenditure in Mexico

Traditionally, the analysis of the impact of public expenditure has been performed via graphical evaluation and simple econometric exercises. In this document we present detailed econometric analysis of the relationship between said variables. In particular, we evaluate the existence of a crowding o...

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Detalles Bibliográficos
Autores: Castillo Ponce, Ramón A., Herrera Hernández, Jorge
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2005
País:México
Institución:EL COLEGIO DE MÉXICO
Repositorio:Estudios Económicos de El Colegio de México
Idioma:español
OAI Identifier:oai:oai.estudioseconomicos.colmex.mx:article/164
Acceso en línea:https://estudioseconomicos.colmex.mx/index.php/economicos/article/view/164
Access Level:acceso abierto
Palabra clave:consumption
investment
crowding out
long-run and short-run effects
C32
E21
E22
E62
consumo
inversión
gasto público
desplazamiento
efectos de corto y largo plazo
Descripción
Sumario:Traditionally, the analysis of the impact of public expenditure has been performed via graphical evaluation and simple econometric exercises. In this document we present detailed econometric analysis of the relationship between said variables. In particular, we evaluate the existence of a crowding out effect of public consumption and investment on private consumption and investment for the period 1980:I – 2002:II. The econometric results indicate that public investment crowds out private investment in the short-run but complements it in the long-run. In the case of private consumption we find statistically significant evidence of crowding out during the period of analysis.