Budget institutions and fiscal performance in Latin America

In this paper, we collect detailed information on the budget institutions of Latin American countries. We classify these institutions on a 'hierarchical'/'colllegial' scale, as a function of the existence of constraints on the deficit, and voting rules. We show that 'hierarchical' and transparent procedures have been associated with more fiscal discipline in Latin America in the 1980s and early 1990s. (C) 1999 Elsevier Science B.V. All rights reserved. JEL classification: H61; D70; E60.