101. Internal and External Shocks and Economic Policy Innovations in Bolivia: A General Approach
- Author
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Luis Fernando Escobar Caba, Roger Alejandro Banegas Rivero, Irma Guadalupe Esparza García, Marco Alberto Núñez Ramírez, and Jorge Salas Vargas
- Subjects
Fiscal balance ,Public investment ,Exchange rate ,Economic policy ,Small open economy ,Economics ,Dynamic stochastic general equilibrium ,Development ,General Economics, Econometrics and Finance ,General Business, Management and Accounting ,Productivity ,Fiscal policy - Abstract
This paper contributes to quantifying the severity of various types of shocks for one small open economy. The role of fiscal policy was evaluated along with monetary and exchange rate innovations and the findings reflect the relevance of domestic and external shocks. These estimates show that productivity shocks explain about 90% of real variables in the economy. Regarding external shocks, the presence of oil perturbance affects approximately one-third of the fiscal balance behavior. Finally, the main instrument of economic policy is related to public investment innovations that cause more than the 50% of the real variables, especially as an instrument for economic crisis.
- Published
- 2021
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