El rol de la inversión pública: El caso de Bolivia

Arbeitspapier

Since 2006, Bolivia began an intensive public investment program under its development plan. Fourteen years later, I analyze the role of this expansionary fiscal policy. In this regard, I develop a Dynamic Stochastic General Equilibrium Model for a small, open and developing country. Among the main results, I highlight that public investment has two roles in the Bolivian economy: positive externality and opportunity cost. First, an increase in public investment generates a positive externality allowing higher levels of economic growth as well as turns into a mechanism to cushion the negative effects of export price shocks. Second, the intensive use of resources for public investment has a crowding out effect on private investment, and deteriorates the public finances in the medium term with the increase of both public debt and fiscal deficit.

Object Details

• Language: Spanisch

References and Relationships

• Bibliographic citation: Series: Development Research Working Paper Series ; No. 06/2020

Classification and Topics

• Classification: Wirtschaft ; Fiscal Policy ; Business Fluctuations; Cycles
• Subject: Public investment ; fiscal policy ; business cycles ; DSGE

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Alarcón Gambarte, Samuel
• Event: Veröffentlichung
• (who): Institute for Advanced Development Studies (INESAD)
• (where): La Paz
• (when): 2020

Further information

• Handle: http://hdl.handle.net/10419/251319
• Last update: 10.03.2025, 11:44 AM CET