The resumption of economic growth in Latin America is predicated on the successful restoration of fiscal discipline and stabilization. In restoring fiscal discipline, the mix of policy instruments should aim at maximizing efficiency in the use of domestic and foreign resources.Poverty...

This paper analyzes factors underlying fiscal developments in 18 developing countries during 1962-82 in relation to developments in their external sectors, which constitute one of their main revenue bases. The analysis focuses on how government expenditure was used as a policy instrument for...

Fiscal policy responses to external shocks are analyzed in an institutional setting that typically characterizes a small open developing economy. In such an economy, taxation of external trade is a major source of government revenue, and external shocks have direct impacts on the fiscal sector....

In designing policy measures, including possible social safety nets, targeted to the poor, it is important to fully understand the efficiency implications of these measures. There is abundant macroeconomic literature on their negative effects on the poor`s work effort. The literature, however,...