The Evo effect

Authors

  • Horacio Villegas University of Chile
  • Tirza J. Aguilar Bolivian Catholic University "San Pablo"
  • Jaime Vargas Bolivian Catholic University "San Pablo"
  • Cecilia Montaño Central Bank of Bolivia

DOI:

https://doi.org/10.35319/lajed.201014362

Keywords:

Poverty, Public Investment, General Computable Equilibrium Model, Headcount Index, Breach, Severity, MECOVI.

Abstract

Using a General Computable Equilibrium Model and applying a microsimulation on MECOVI Survey of 2007, the document shows that the public investment has a positive effect on the poverty reduction in a moderate, present and high investment scene. However, the poverty reduction is not too significant. The most important results are demonstrated in the headcount index, it reduced around 3 points in a scene of high intervention and 2 points in a scene of investment like the present one. Nevertheless, the results obtained for the breach indicators and severity of poverty are more modest.

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Author Biographies

Horacio Villegas, University of Chile

Economist of University of Chile

Tirza J. Aguilar, Bolivian Catholic University "San Pablo"

Junior Economist at the Socio-Economic Research Institute of Bolivian Catholic University San Pablo.

Jaime Vargas, Bolivian Catholic University "San Pablo"

Research Assistant at the Socio-Economic Research Institute of Bolivian Catholic University San Pablo.

Cecilia Montaño, Central Bank of Bolivia

Analyst at Central Bank of Bolivia

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Published

2010-11-01

How to Cite

Villegas, H., J. Aguilar, T. ., Vargas, J. ., & Montaño, C. . (2010). The Evo effect. Latin American Journal of Economic Development, 8(14), 163–182. https://doi.org/10.35319/lajed.201014362