Public expenditure multiplier in Bolivia: a first approach

Authors

  • Jorge Pablo Puig National University of La Plata

DOI:

https://doi.org/10.35319/lajed.20152469

Keywords:

Public expenditure multiplier, Fiscal Policy, Business Cycle, SVAR

Abstract

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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Author Biography

Jorge Pablo Puig, National University of La Plata

Department of Economics, Faculty of Economic Sciences. National University of La Plata

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Published

2015-11-01

How to Cite

Puig, J. P. (2015). Public expenditure multiplier in Bolivia: a first approach. Latin American Journal of Economic Development, 13(24), 47–78. https://doi.org/10.35319/lajed.20152469