State dependence of fiscal multipliers in Chile | LAER Vol. 32

In studying the economic cycle dependency of fiscal multipliers in Chile, we implement an independent component analysis for structural shock identification within a non-linear vector autoregressive setting with generalized impulse response functions. Thereby we relax more restrictive assumptions adopted in previous studies, namely the a-priori assumption of a recursive model structure and the use of linear impulse response functions. As a result, we cannot fully confirm core insights from more restrictive structural models: we find no significant differences in neither government spending nor government revenues multipliers when comparing different states of the economy. Moreover, our estimates imply that fiscal multipliers in Chile do not differ significantly from zero.

Lee el artículo escrito por Andrés Fortunato y Helmut Herwartz  aquí

Latin American Economic Review aims to be the leading general interest journal on topics relevant to Latin America. The journal welcomes high-quality theoretical and quantitative papers on economic, social and political-economy issues with a regional focus. Articles presenting new data bases or describing structural reforms within a rigorous theoretical framework will also be considered. A few (illustrative) examples of topics that may be of special interest to this journal include: inflation, informal sector, corruption, crime, drug policy, unions, social exclusion, price controls, energy and environmental policy, natural resources, and technology transfer.

TOP