Authorities' Fiscal Forecasts in Latin America : Are They Optimistic? /

Do governments in Latin America tend to be optimistic when preparing budgetary projections? We address this question by constructing a novel dataset of the authorities' fiscal forecasts in six Latin American economies using data from annual budget documents over the period 2000-2018. In turn, w...

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Chi tiết về thư mục
Tác giả chính: Hadzi-Vaskov, Metodij
Tác giả khác: Ricci, Luca, Werner, Alejandro, Zamarripa, Rene
Định dạng: Tạp chí
Ngôn ngữ:English
Được phát hành: Washington, D.C. : International Monetary Fund, 2021.
Loạt:IMF Working Papers; Working Paper ; No. 2021/154
Những chủ đề:
Truy cập trực tuyến:Full text available on IMF
Miêu tả
Tóm tắt:Do governments in Latin America tend to be optimistic when preparing budgetary projections? We address this question by constructing a novel dataset of the authorities' fiscal forecasts in six Latin American economies using data from annual budget documents over the period 2000-2018. In turn, we compare such forecasts with the outturns reported in the corresponding budget documents of the following years to understand the evolution of fiscal forecast errors. Our findings suggest that: (i) for most countries, there is no general optimistic bias in the forecasts for the fiscal balance-to-GDP ratio (though there may be for the components); (ii) fiscal forecasts have improved for some countries over time, albeit they have worsened for others; (iii) in terms of drivers, we show that forecast errors for the fiscal balance-to-GDP ratio are positively correlated with GDP growth and terms of trade changes and negatively with GDP deflator surprises; (iv) forecast errors for public debt-to-GDP ratios are negatively associated with surprises to GDP growth; (v) lastly, budget balance rules seem to help contain the size of the fiscal forecast errors.
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Mô tả vật lý:1 online resource (42 pages)
Định dạng:Mode of access: Internet
số ISSN:1018-5941
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