Abstract
ABSTRACT This paper evaluates the fiscal effects of the Financial Discipline Law for States and Municipalities (LDFEM, in Spanish) on Mexican local governments. As a public financial management (PFM) reform, the LDFEM is an agency solution that establishes a national fiscal rule to align subnational fiscal behavior and achieve a sustainable fiscal position in all states and municipalities. This paper uses a quasi-experimental research design to explore the effects of complying with the LDFEM on financial conditions–budget balances and debt management. The findings suggest improvements in budget balances and debt costs and no impact on variations in debt obligations.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
