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An estimation of expenditure needs for Argentinian provinces: A structural modeling approach

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  • Héctor Cardozo

    (Arizona State University)

Abstract

Since 1994 Argentina has failed to honor its Constitution by not passing a law that fully determines intergovernmental fiscal transfers at a national level. This paper uses an innovative structural framework to estimate, and ultimately propose, a new distribution scheme for such transfers. The structural approach allows for the recovery of deep parameters to accurately estimate the expenditure needs for each province, which can then be used to establish the distribution rates that should be assigned to each jurisdiction.

Suggested Citation

  • Héctor Cardozo, 2021. "An estimation of expenditure needs for Argentinian provinces: A structural modeling approach," Ensayos de Política Económica, Departamento de Investigación Francisco Valsecchi, Facultad de Ciencias Económicas, Pontificia Universidad Católica Argentina., vol. 3(3), pages 41-75, Octubre.
    • Handle: RePEc:atw:epecon:v:3:y:2021:i:3:p:41-75
    DOI: 10.46553/ensayos.3.3.2021.p41-75
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    References listed on IDEAS

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    2. Richard Bird & François Vaillancourt, 2007. "Expenditure-Based Equalization Transfers," Springer Books, in: Jorge Martinez-Vazquez & Bob Searle (ed.), Fiscal Equalization, chapter 0, pages 259-289, Springer.
    3. Anwar Shah, 1996. "A Fiscal Need Approach to Equalization," Canadian Public Policy, University of Toronto Press, vol. 22(2), pages 99-115, June.
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    5. Juan Pablo Nicolini & Josefina Posadas & Juan Sanguinetti & Pablo Sanguinetti & Mariano Tommasi, 2002. "Decentralization, Fiscal Discipline in Sub-National Governments and the Bailout Problem: The Case of Argentina," Research Department Publications 3160, Inter-American Development Bank, Research Department.
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    7. Pollak, Robert A & Wales, Terence J, 1978. "Estimation of Complete Demand Systems from Household Budget Data: The Linear and Quadratic Expenditure Systems," American Economic Review, American Economic Association, vol. 68(3), pages 348-359, June.
    8. Aaberge, Rolf & Langorgen, Audun, 2003. "Fiscal and Spending Behavior of Local Governments: Identification of Price Effects When Prices Are Not Observed," Public Choice, Springer, vol. 117(1-2), pages 125-161, October.
    9. Shah, Anwar & DEC, 1994. "A fiscal needs approach to equalization transfers in a decentralized federation," Policy Research Working Paper Series 1289, The World Bank.
    10. Jorge M. Streb, 2019. "Tributación sin representación: Argentina desde 1983," Ensayos de Política Económica, Departamento de Investigación Francisco Valsecchi, Facultad de Ciencias Económicas, Pontificia Universidad Católica Argentina., vol. 3(1), pages 1-35, Octubre.
    11. Jones, Mark P. & Sanguinetti, Pablo & Tommasi, Mariano, 2000. "Politics, institutions, and fiscal performance in a federal system: an analysis of the Argentine provinces," Journal of Development Economics, Elsevier, vol. 61(2), pages 305-333, April.
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    1. James W. Mjelde & Kannika Duangnate, 2023. "Overview of Committed Quantities in Commodity Demand Analysis with a Focus on Energy," Energies, MDPI, vol. 16(11), pages 1-17, May.

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    More about this item

    Keywords

    expenditure needs; structural approach; distribution scheme; fiscal transfers;
    All these keywords.

    JEL classification:

    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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