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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

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    File URL: https://mpra.ub.uni-muenchen.de/43087/1/MPRA_paper_43087.pdf
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    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.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Fiscal policy; tax income; debt; economic development; inequality;
    All these keywords.

    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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