da Silva, Alexandre Manoel Angelo Cândido Júnior, José Oswaldo
Year of Publication:
Texto para Discussão, Instituto de Pesquisa Econômica Aplicada (IPEA) 1434
This paper measures the public expenditure macroeconomic impacts (public consumption and public investment) in the more important Latin American economies by cointegrated autoregressive vectors. In the long run, public investments affect positively output and private consumption, although it has showed a substitution relationship with private investments. In the short run, government consumption multipliers used to be positive and statistically significant, although it has showed low impact. However, government investment multipliers used not to be statistically significant.