Meloni, Osvaldo2022-03-212024-09-112022-03-212018-11-16Public Finance and Management ISSN 1523-9721 Volume 18, Number 3-4, pp. 265-284 20181523-9721https://riunt.unt.edu.ar/handle/123456789/97This paper analyses the fiscal behavior of subnational districts in Argentina over the business cycle. I address two questions. Is the fiscal policy of Argentine districts procyclical? If so, what is the theory that best explains procyclicality? The answers come from the estimation of an error correction model of a panel that spans 23 years and 24 districts. I found that all categories of public expenditures, except for capital expenditures, were procyclical. The main sources of procyclicality are the political networks, changes in the amount of oil, gas and mining grants, federal interventions, and discretionary intergovernmental transfers.enfiscal policy, procyclicality, subnational districts, ArgentinaArticle