The undertaken econometric analysis, based on a fixed effect panel data model for the period 1993-2004, aimed at ascertaining whether the participation of public expenditure categories in the total public spending of Argentine provinces was influenced by economic, fiscal and politico-institutional variables such as provinces´ political sign, governors´ possibility of reelection, provisions limiting public spending and public debt or conditioning the use of credit and the structure of legislatures.
While estimated regression coefficients for fiscal effort, financial sufficiency, and public debt were significantly different from 0, results fell short of being conclusive for the other variables, except for categorical variables standing for limits on spending and credit use.
