Impact of NFPS Capital Expenditure on Economic Growth in Bolivia in years 2006-2016

Joab Valdivia Coria

Cuadernos de Investigación Económica Boliviana, 2017, vol. 2, issue 1, 1-23

Abstract: In recent years, public investment has become considerably more dynamic with the application of the Economic Social Communitarian Productive Model (MESCP) since 2006, which helped reactivate and boost the domestic demand, unlike what happened in previous periods. The scenario simulations based on a Dynamic Stochastic General Equilibrium (DSGE) model proposed by the study reveal the importance of capital expenditure in economic growth. The results show that changes in capital spending in the short term persistently boost economic growth and have positive effects on con-sumption and private investment, dismissing the existence of a possible crowding-out effect in the private sector.

Keywords: Bayesian Estimation; Tax Expenditure; Public Investment; Dynamic Stochastic Gen-eral Equilibrium (DSGE) model; Fiscal Policy (search for similar items in EconPapers)
JEL-codes: C11 C31 G21 (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:efp:journl:v:2:y:2017:i:1:p:1-23

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