Budget Institutions and Fiscal Performance in Latin America


In this paper we collect detailed information on the budget institutions of Latin American countries. We classify these institutions on a "hierarchical"/"collegial" scale, as a function of the existence of constraints on the deficit, and voting rules. We show that "hierarchical" and transparent procedures have been associated with more fiscal discipline in Latin America in the eighties and early nineties.

Working Paper 394, Office of the Chief Economist, Inter-American Development Bank, June 2006.