IDENTIFYING FISCAL POLICY SHOCKS IN CHILE AND COLOMBIA

Jorge E. Restrepo () and Hernan Rincon-Castro

No 2800, Borradores de Economia from Banco de la Republica

Abstract: Structural VAR and Structural VEC models were estimated for Chile and Colombia, aiming at identifying fiscal policy shocks in both countries between 1990 and 2005. The impulse responses obtained allow the calculation of a pesofor- peso ($/$) effect on output of a shock to public spending and to the government's net tax revenues, providing a good notion of the incidence of fiscal policy shocks in both countries. When public finances are under control, as they are in Chile, fiscal policy seems to be more effective than when they lack stability and credibility, as seems to be the case of Colombia since the mid nineties.

Keywords: Identification; Fiscal Policy; SVAR; SVEC (search for similar items in EconPapers)
JEL-codes: C32 C51 C52 C53 E62 E63 (search for similar items in EconPapers)
Pages: 25
Date: 2006-07-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (26)

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Related works:
Working Paper: IDENTIFYING FISCAL POLICY SHOCKS IN CHILE AND COLOMBIA (2006)
Working Paper: Identifying Fiscal Policy Shocks in Chile and Colombia (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:col:000094:002800

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