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Transformación económica desde la óptica fiscal. ¿Puede existir un equilibrio entre el corto, mediano y largo plazo para fomentar el desarrollo?
[Fiscal view of economic transformation: Can exist and equilibrium between short, medium and long run for boosting development?]

Author

Listed:
  • Valdivia, Daney
  • Loayza, Lilian

Abstract

This paper computes the fiscal stance in a small open economy and asses its position to relevant macroeconomic variables in order to protect the macroeconomic stability and promote development. Since 2006 change in income and tax structure shifts the implementation of fiscal policy, increasing fiscal space and its activeness to apply policy. To get the fiscal stance we apply two different methods and use the method proposed by Bates-Granger to obtain its optimal combination. The results show that fiscal policy was contractionary and expansionary over the cycle to inflation, output gap and gross capital formation, leading improvements in poverty and inequality indicators enabling greater economic and social development.

Suggested Citation

  • Valdivia, Daney & Loayza, Lilian, 2012. "Transformación económica desde la óptica fiscal. ¿Puede existir un equilibrio entre el corto, mediano y largo plazo para fomentar el desarrollo?
    [Fiscal view of economic transformation: Can exist a
    ," MPRA Paper 43087, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:43087
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/43087/1/MPRA_paper_43087.pdf
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    as
    1. Burnside, Craig & Eichenbaum, Martin & Fisher, Jonas D. M., 2004. "Fiscal shocks and their consequences," Journal of Economic Theory, Elsevier, vol. 115(1), pages 89-117, March.
    2. Selma Mahfouz & Richard Hemming & Michael Kell, 2002. "The Effectiveness of Fiscal Policy in Stimulating Economic Activity; A Review of the Literature," IMF Working Papers 02/208, International Monetary Fund.
    3. repec:idb:brikps:73838 is not listed on IDEAS
    4. Olivier Blanchard & Roberto Perotti, 2002. "An Empirical Characterization of the Dynamic Effects of Changes in Government Spending and Taxes on Output," The Quarterly Journal of Economics, Oxford University Press, vol. 117(4), pages 1329-1368.
    5. Baxter, Marianne & King, Robert G, 1993. "Fiscal Policy in General Equilibrium," American Economic Review, American Economic Association, vol. 83(3), pages 315-334, June.
    6. Matthew B. Canzoneri & Robert E. Cumby & Behzad T. Diba, 2001. "Is the Price Level Determined by the Needs of Fiscal Solvency?," American Economic Review, American Economic Association, vol. 91(5), pages 1221-1238, December.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Darwin Ugarte Ontiveros, 2016. "The Cyclicality Of Fiscal Policy In Bolivia," Volúmenes de los Cuadernos de Investigacion Economica Boliviana publicados por el Ministerio de Economía y Finanzas Públicas 2016-1, Ministerio de Economía y Finanzas Publicas de Bolivia.

    More about this item

    Keywords

    Fiscal policy; tax income; debt; economic development; inequality;

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development

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