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El legado económico del general Velasco: consecuencias a largo plazo del intervencionismo


  • Marco Vega

    ( Banco Central de Reserva del Perú, Pontificia Universidad Católica del Perú)

  • César Martinell

    ( George Mason University)


We apply synthetic control methods to study the long-term consequences of the interventionistand collectivist reforms implemented by the Peruvian military junta of 1968–1975. We comparelong-term outcomes for the Peruvian economy following the radical reforms of the early 1970swith those of two controls made of similar countries, one chosen in the Latin American regionand another one chosen from the world at large. We find that the economic legacy of the juntaincludes sizable loses in GDP along two decades, beyond those that can be attributed to adverseinternational circumstances. The evidence suggests that those loses can be attributed both to adecline in capital accumulation and to a fall in productivity.

Suggested Citation

  • Marco Vega & César Martinell, 2019. "El legado económico del general Velasco: consecuencias a largo plazo del intervencionismo," Revista Economía, Fondo Editorial - Pontificia Universidad Católica del Perú, vol. 42(84), pages 102-133.
  • Handle: RePEc:pcp:pucrev:y:2019:i:84:p:102-133

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    References listed on IDEAS

    1. Becker, Martin & Klößner, Stefan, 2018. "Fast and reliable computation of generalized synthetic controls," Econometrics and Statistics, Elsevier, vol. 5(C), pages 1-19.
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    11. Marco Vega & César Martinelli, 2018. "The Monetary and Fiscal History of Peru, 1960-2017: Radical Policy Experiments, Inflation and Stabilization," Documentos de Trabajo / Working Papers 2018-468, Departamento de Economía - Pontificia Universidad Católica del Perú.
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    More about this item


    Output loss; Synthetic controls; Military nationalism; Populism; Collectivism; PeruvianRevolution.;

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy


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