Conjunctural Analysis of Fiscal Policy in Mexico. 1993-2004

Abstract

This paper presents a methodological procedure, designed by Kalecki, explained bySzeworski, and adapted to the case of the Mexican economy by López Gallardo, whichhelps to identify the role that the state sector plays in economic circumstances. The procedureclassifies government spending on different categories according to their sourcesof funding and it allows you to distinguish its effect on economic activity. The methodologywas applied to studying the Mexican economy between 1993 and 2004; specifically forthe fiscal performance during economic conjunctures, observed in 1995 and 2001. Theresults by applying the method for analysis purposes of government spending show thatgovernment intervention was very important; in both periods, modifying of financing of publicexpenditure was a notorious element for the recovery of economic activity.