Efectos macroeconómicos de la política fiscal: Evidencia empírica para Bolivia
[Macroeconomic effects of fiscal policy: Empirical evidence from Bolivia]
AbstractUsing a Structural Vector Autoregression approach (SVAR), the paper estimates the response of output, price levels, private investment and consumption to expansive and contractive fiscal shocks. The results show that government spending shocks have a positive effect on GDP. On the other hand, a tax increase has a negative effect on the output, through the contraction of consumption and private investment. By disaggregating government spending on consumption and investment, shows that growth in the short run would be motivated by increases in government consumption and public investment. However, in the long run public investment is the fiscal factor with greatest impact on economic growth. Finally, we find that after an increase in public spending, private investment reacts negatively (empirical evidence of a crowding-out effect). Also, higher spending volumes derived in permanent increases in the price level.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 39696.
Date of creation: 2010
Date of revision: 2011
Fiscal Policy; Structural VAR; Public Expenditure; Bolivia;
Find related papers by JEL classification:
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ethan Ilzetzki & Enrique G. Mendoza & Carlos A. Végh, 2010.
"How Big (Small?) are Fiscal Multipliers?,"
NBER Working Papers
16479, National Bureau of Economic Research, Inc.
- Ethan Ilzetzki & Enrique G. Mendoza & Carlos A. Végh, 2010. "How Big (Small?) are Fiscal Multipliers?," CEP Discussion Papers dp1016, Centre for Economic Performance, LSE.
- Ethan Ilzetzki & Enrique G. Mendoza & Carlos A. VÃ©gh Gramont, 2011. "How Big (Small?) are Fiscal Multipliers?," IMF Working Papers 11/52, International Monetary Fund.
- António Afonso & Ricardo M. Sousa, 2008.
"The Macroeconomic Effects of Fiscal Policy,"
2008/56, Department of Economics at the School of Economics and Management (ISEG), Technical University of Lisbon..
- Rodrigo Cerda & Luis Felipe Lagos & Hermann González, 2005. "Efectos Dinámicos de la Política Fiscal," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 42(125), pages 63-77.
- Alberto Alesina & Roberto Perotti, 1994.
"The Welfare State and Competitiveness,"
NBER Working Papers
4810, National Bureau of Economic Research, Inc.
- Ignacio Lozano & Karen Rodríguez, .
"Assessing the Macroeconomic Effects of Fiscal Policy in Colombia,"
Borradores de Economia
552, Banco de la Republica de Colombia.
- Ignacio Lozano & Karen Rodríguez, 2011. "Assessing the macroeconomic effects of fiscal policy in Colombia," Journal of Financial Economic Policy, Emerald Group Publishing, vol. 3(3), pages 206-228, August.
- Perotti, Roberto & Alesina, Alberto, 1997. "The Welfare State and Competitiveness," Scholarly Articles 4553027, Harvard University Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.