a cycle-adjusted fiscal rule for sustainable and more equitable growth in argentina

Page 41

Table 16: Individual Shocks Productivity shocks

Terms-of-trade shocks

SD

Change in SD

SD

Variable

No rule

Fiscal rule

Consumption of tradable goods (Ricardian) Consumption of tradable goods (non-Ricardian) Consumption of tradable goods Consumption of nontradable goods (Ricardian) Consumption of nontradable goods (nonRicardian) Consumption of nontradable goods

0.011

−26.7%

Fiscal rule w/p −31.6%

No rule 0.008

0.009

−29.8%

−35.5%

0.010

−28.2%

0.002

Change in SD

−23.1%

Fiscal rule w/p −26.0%

0.004

−45.0%

−50.9%

−33.4%

0.006

−31.3%

−35.2%

−37.8%

−31.7%

0.005

−7.7%

−5.9%

0.003

−39.6%

−38.9%

0.002

−56.3%

−56.0%

0.002

−41.7%

−38.3%

0.003

−19.4%

−17.8%

Private investment

0.002

−4.4%

−4.7%

0.001

−10.2%

−10.4%

Federal public investment

0.001

−100.0%

−100.0%

0.001

−100.0%

−100.0%

Local public investment

0.001

−35.1%

−71.8%

0.001

−39.8%

−69.5%

Federal primary spending

0.005

−100.0%

−100.0%

0.003

−100.0%

−100.0%

Local primary spending

0.004

−35.1%

−72.0%

0.002

−40.6%

−70.9%

Employment in the tradable sector Employment in the nontradable private sector Employment in the nontradable federal public sector Employment in the nontradable local public sector

0.007

11.4%

15.4%

0.003

−27.3%

−29.9%

0.003

−41.7%

−38.3%

0.004

−19.4%

−17.8%

0.001

−100.0%

−100.0%

0.001

−100.0%

−100.0%

0.003

−35.1%

−72.1%

0.001

−41.0%

−71.6%

Employment

0.014

−18.4%

−22.5%

0.006

−33.5%

−38.2%

Tradable output

0.013

−1.3%

−0.7%

0.004

−28.8%

−30.9%

Nontradable output

0.002

−41.7%

−38.3%

0.003

−19.4%

−17.8%

GDP

0.025

−15.7%

−19.0%

0.015

−18.1%

−20.5%

Price of the nontradable good

0.069

−18.4%

−22.5%

0.030

−33.5%

−38.2%

Wages

0.055

−18.4%

−22.5%

0.024

−33.5%

−38.2%

Interest rate

0.018

7.8%

10.3%

0.010

−11.1%

−13.1%

Debt

0.002

−18.9%

−22.7%

0.005

−6.7%

−7.4%

Total federal taxes

0.005

−21.8%

−25.5%

0.003

−22.6%

−25.1%

Total local taxes

0.004

−35.1%

−72.1%

0.002

−41.0%

−71.6%

Source: IERAL of the Mediterranean Foundation.

38

Fiscal rule


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