Abstract
The paper studies the dynamic effects of fiscal policy shocks upon Argentine macroeconomic variables such as the gross domestic product, the inflation rate and the level of unemployment; a structural Vector Autoregression model is resorted to in order to estimate the impulse response functions; the econometric analysis is carried out for the period 1984-2005 (second quarter) and quarterly logarithmic real variables are used for the VAR´s specification. Point estimation of impulse response functions indicate both a relatively low statistical significance of fiscal shocks upon macroeconomic variables and a short-lived impact of innovations while at the same time cast doubts upon some traditionally accepted Keynesian macroeconomic policy prescriptions.
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