Assessing Different Methodologies for the Estimation of Uruguay's Structural Fiscal Balance
This document assesses the advantages and disadvantages of using different methodologies to estimate Uruguay's structural fiscal balance. Results indicate that disaggregated methods or methods with more than one economic cycle are the more appropriate ones, as they are better suited to handle the changes in revenues and expenditures composition observed in recent years. The document also discusses some of the difficulties faced while estimating the temporary components in interest payments and in the primary results of state-owned enterprises. As model-based corrections tend to be unreliable; it might be preferable to deal with the temporary components of these items as one-off corrections.