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El desafio de ser Keynesiano con vacas flacas
[Tne challenge of being Keynesian in troubel times]

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  • Peirone, Victor Hugo

Abstract

The end of convertibility regime and the default closed the access to foreign credit markets to the argentine government. This scenario has reopened de debate on endogenous development, dubbed here “Living with Our Own Resources” (LOOR), that was included in some political discourses in past decades. The first objective of this paper is verifying the anti-cyclical behavior of public revenues, particularly under recessions, as a condition for the sustainability of Keynesian (LOOR) policies. Having found that tax collection performs in a pro-cyclic manner it was proposed here that economic agents use tax evasion as an alternative mechanism of finance. With GDP, tax collection and interest rate data a VAR model was proposed to check whether the Keynesian (LOOR) approach does seem to be feasible.

Suggested Citation

  • Peirone, Victor Hugo, 2003. "El desafio de ser Keynesiano con vacas flacas [Tne challenge of being Keynesian in troubel times]," MPRA Paper 41087, University Library of Munich, Germany, revised 2003.
    • Handle: RePEc:pra:mprapa:41087
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    References listed on IDEAS

    as
    1. Ernesto Talvi & Carlos A. Vegh, 2000. "Tax Base Variability and Procyclical Fiscal Policy," NBER Working Papers 7499, National Bureau of Economic Research, Inc.
    2. Andreoni, James, 1992. "IRS as loan shark tax compliance with borrowing constraints," Journal of Public Economics, Elsevier, vol. 49(1), pages 35-46, October.
    3. Alejandro Izquierdo & Ernesto Talvi & Guillermo A. Calvo, 2002. "Sudden Stops, the Real Exchange Rate and Fiscal Sustainability: Argentina's Lessons," Research Department Publications 4299, Inter-American Development Bank, Research Department.
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    More about this item

    Keywords

    (keynesian) (taxation);

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook

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