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Politics, Institutions, and Fiscal Performance in the Argentine Provinces

Author

Listed:
  • Mariano Tommasi

    (Department of Economics, Universidad de San Andres)

  • Mark P. Jones

    (Department of Political Science, Michigan State University)

  • Pablo Sanguinetti

    (Department of Economics, Universidad Torcuato Di Tella)

Abstract

We posit that the fiscal behavior of Argentine provinces is determined by a common pool game at two levels: within each province, and across political units. In the latter game, the national government has a greater incentive than the provincial governments to internalize the negative externality of fiscal imprudence. Given relatively strong party discipline, the president is able to induce governors from his party to internalize a portion of the externality to a greater extent than opposition governors. In Argentina “party matters” for fiscal behavior, but it does so for reasons different from those identified in studies of OECD countries.

Suggested Citation

  • Mariano Tommasi & Mark P. Jones & Pablo Sanguinetti, 1997. "Politics, Institutions, and Fiscal Performance in the Argentine Provinces," Working Papers 16, Universidad de San Andres, Departamento de Economia, revised Apr 2000.
    • Handle: RePEc:sad:wpaper:16
    as

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    More about this item

    Keywords

    Argentina; common pool; federalism; fiscal behavior;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • 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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