Fiscal Multiplier in Bolivia: Do the Nationalization Process and the Unconventional Monetary Policy matter?

Wilma Ticona Huanca ()
Additional contact information
Wilma Ticona Huanca: Universitat de Barcelona

No 2023/444, UB School of Economics Working Papers from University of Barcelona School of Economics

Abstract: This paper studies the fiscal multiplier in Bolivia considering key characteristics of the country and compares the results obtained for Bolivia with the fiscal multipliers estimated for Latin American countries. The main finding is that a positive shock to government spending increases output causing a larger short term response, with an impact multiplier of 0.74. This value is robust when the unconventional monetary policy is added, reaching a value of 0.73. Consideration of the Bolivian nationalization process in the analysis uncovers distinct impact multipliers, with a higher value during the Pre-nationalization (1990-2005) than the Post-nationalization (2006-2019) periods which correspond, respectively, to crisis and boom periods. A comparative analysis with Latin American countries confirms that fiscal multipliers are higher in the short term and economic downturns.

Keywords: Fiscal multiplier; government spending; unconventional monetary policy. (search for similar items in EconPapers)
JEL-codes: B22 E50 E62 H50 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/2445/198644 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 read timeout (http://hdl.handle.net/2445/198644 [302 Found]--> https://diposit.ub.edu/dspace/handle/2445/198644)

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:ewp:wpaper:444web

Access Statistics for this paper

More papers in UB School of Economics Working Papers from University of Barcelona School of Economics Av. Diagonal 690, 08034 Barcelona. Contact information at EDIRC.
Bibliographic data for series maintained by University of Barcelona School of Economics ().