Public expenditure multiplier in Bolivia: a first approach
DOI:
https://doi.org/10.35319/lajed.20152469Keywords:
Public expenditure multiplier, Fiscal Policy, Business Cycle, SVARAbstract
This paper provides first empirical estimations about public expenditure multiplier in Bolivia, using a structural vector autoregression methodology (SVARs). At the same time it considers the composition of public expenditure. Total expenditure multiplier is imperceptible on impact but quickly loses statistical support. Current expenditure shows the same dynamic while capital expenditure has a very small and statistically significant multiplier after 12 quarters. On others macroeconomic aggregates, the estimated multipliers are small and rarely significantly different from zero.
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