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Efectos Macroeconómicos de la Política Fiscal en Ecuador 1993-2009
[Macroeconomic Effects of Fiscal Policy in Ecuador 1993-2009]

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  • Carrillo, Paul A.

Abstract

Fiscal policy is particularly relevant in dollarized economies. For the case of Ecuador, we analyze the effects of taxes and public spending on the overall performance of the economy for the period 1993-2009. To do this, we use a structural autoregressive vector model (SVAR) incorporating the stylized facts of Ecuador estimated on Gachet et al. (2010). The main results are: i) the taxes have only temporary effects on the ecuadorian economy, ii) the increase in indirect taxes affect negatively on imports, exports and GDP, iii) the increase in direct taxes has a positive effect on exports, vi) a positive shock of government consumption has an effect on taxes and investment, v) fiscal policy instruments have a high interrelation between them.

Suggested Citation

  • Carrillo, Paul A., 2010. "Efectos Macroeconómicos de la Política Fiscal en Ecuador 1993-2009 [Macroeconomic Effects of Fiscal Policy in Ecuador 1993-2009]," MPRA Paper 34436, University Library of Munich, Germany, revised Oct 2011.
    • Handle: RePEc:pra:mprapa:34436
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    References listed on IDEAS

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    More about this item

    Keywords

    Fiscal policy; GDP; SVAR; Stylized Facts; Ecuador Política Fiscal; PIB; SVAR; Hechos Estilizados; Ecuador;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)

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