Effects of the Global Financial and Economic Crisis on the Bolivian economy: A CGE approach

Arbeitspapier

This paper analyses the impact of the Global Financial Crisis on the Bolivian economy. The PEP 1-1 Standard Model has been employed to analyze the effects of a reduction in (i) the world export prices of mining and agriculture, (ii) the world demand of textiles, and (iii) transfers to households (i.e., remittances) from abroad. The model has been calibrated to a new 2006 SAM for Bolivia. The households have been disaggregated according to their location (urban and rural) and ethnicity (indigenous and non-indigenous). The factors of production have been disaggregated into skilled and unskilled labor, capital, and natural resources. Not surprisingly, our results highlight the relevance of the decrease in the export price of natural gas in explaining the negative effects of the Global Financial Crisis.

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• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Development Research Working Paper Series ; No. 10/2010

Classification and Topics

• Classification: Wirtschaft ; Computable General Equilibrium Models ; Financial Crises ; General Aggregative Models: Forecasting and Simulation: Models and Applications
• Subject: Computable General Equilibrium Model ; Financial Crisis ; Forecasting and Simulation ; Finanzmarktkrise ; Makroökonomischer Einfluss ; CGE-Modelling ; Allgemeines Gleichgewicht ; Social Accounting Matrix ; Bolivien

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Cicowiez, Martin ; Machicado, Carlos Gustavo
• Event: Veröffentlichung
• (who): Institute for Advanced Development Studies (INESAD)
• (where): La Paz
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/45690