Relative importance of foreign and domestic shocks in the Venezuelan economy

José Mora ()

Economía, 2008, vol. 33, issue 25, 61-86

Abstract: This paper uses a Cholesky Factorization in a var analysis to investigate the relative importance of foreign and domestic shocks in the Venezuelan economy during the 1960:i- 2004:ii period. The economy is assumed to be driven by foreign (U. S. gdp and oil prices) and domestic (exchange rate, fiscal, monetary, inflation, and output) orthogonal shocks. As shown by the empirical evidence foreign shocks tend to be relatively more important than domestic shocks. Precisely, oil price and U. S. gdp shocks tend to have permanent effects on the main macroeconomic aggregates. Monetary policy only has temporary effects on output and the nominal exchange rate.

Keywords: Time-series models; business fluctuations; latin american economies. (search for similar items in EconPapers)
JEL-codes: C32 E32 O54 (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
ftp://iies.faces.ula.ve/Pdf/Revista25/Rev25Mora.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ula:econom:v:33:y:2008:i:25:p:61-86

Access Statistics for this article

Economía is currently edited by Dyanna María Ruíz Uzcátegui and Yibeli Emilia Briceño Carrero

More articles in Economía from Instituto de Investigaciones Económicas y Sociales (IIES). Facultad de Ciencias Económicas y Sociales. Universidad de Los Andes. Mérida, Venezuela Facultad de Ciencias Económicas y Sociales. Instituto de Investigaciones Económicas y Sociales. Campus Universitario Liria, Edificio G, Tercer Nivel. Mérida 5101, Estado Mérida, Venezuela. Contact information at EDIRC.
Bibliographic data for series maintained by Alexis Vásquez ().