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Un Marco de Consistencia Macroeconómica para la Economía Ecuatoriana: Un Regreso a los Fundamentos
[Macroeconomic Consistency Framework for the Ecuadorian Economy: Getting Back to Fundamentals]


  • Gachet, Ivan
  • Girjalva, Diego
  • Rivadeneira, Ana
  • Uribe, Carlos


This document presents a Macroeconomic Consistency Model for a dollarized economy such as Ecuador. Based on a simply accounting framework that combined the social accounting matrix with the flow of funds, we integrate the different sectors of the economics through a matrix of income, expenditure, saving, and asset and liability accumulation. This is done by using Easterly's (1989) Consistency Accounting Matrix which specifies the linkages between sources and uses of funds as well as between institutional sector accounts. This approach ensures the numerical consistency of data drawn from different sources in such a way that, both, the sectoral budget constraints as well as the overall economy-wide budget constraints are simultaneously satisfied. From this model we were able to estimate the liquidity of the economy, the actual amount of government subsidies, and the gaps in the Ecuadorian economy.

Suggested Citation

  • Gachet, Ivan & Girjalva, Diego & Rivadeneira, Ana & Uribe, Carlos, 2007. "Un Marco de Consistencia Macroeconómica para la Economía Ecuatoriana: Un Regreso a los Fundamentos
    [Macroeconomic Consistency Framework for the Ecuadorian Economy: Getting Back to Fundamentals]
    ," MPRA Paper 16799, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:16799

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    References listed on IDEAS

    1. Easterly, William, 2007. "Inequality does cause underdevelopment: Insights from a new instrument," Journal of Development Economics, Elsevier, vol. 84(2), pages 755-776, November.
    2. William Easterly, 2007. "Was Development Assistance a Mistake?," American Economic Review, American Economic Association, vol. 97(2), pages 328-332, May.
    3. Taylor, Lance, 1987. "Macro policy in the tropics: How sensible people stand," World Development, Elsevier, vol. 15(12), pages 1407-1435, December.
    4. Bolnick, B.R., 1999. "The Role of Financial Programming in Macroeconomic Policy Management," Papers 720, Harvard - Institute for International Development.
    5. Everaert, Luc & Garcia-Pinto, Fernando & Ventura, Jaume, 1990. "A RMSM-X model for Turkey," Policy Research Working Paper Series 486, The World Bank.
    6. Jonathan Temple, 1999. "The New Growth Evidence," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 112-156, March.
    7. J. J. Polak, 1957. "Monetary Analysis of Income Formation and Payments Problems," IMF Staff Papers, Palgrave Macmillan, vol. 6(1), pages 1-50, November.
    8. Easterly, William, 1999. "Life during growth : international evidence on quality of life and per capita income," Policy Research Working Paper Series 2110, The World Bank.
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    Cited by:

    1. Gachet, Ivan & Maldonado, Diego & Oliva, Nicolas & Ramirez, Jose, 2011. "Hechos Estilizados de la Economía Ecuatoriana: El Ciclo Económico 1965-2008
      [Stylized Facts of the Ecuadorian Economy: The Economic Chicle 1965-2008]
      ," MPRA Paper 30280, University Library of Munich, Germany.

    More about this item


    Macroeconomics; Financial Programing; Macroeconomic Consistency;

    JEL classification:

    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General


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