Macroeconomic Effects of Fiscal Policy during the Covid-19 Crisis: Evidence from Bolivia at a Regional Level

DOI:  https://doi.org/10.12804/revistas.urosario.edu.co/economia/a.13596

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Published: Aug 15, 2023
Issue: Vol. 26 No. 1 (2023)
Section Articles


Keywords: Fiscal policy Covid-19 Shocks Economic cycles Mixed frequency vector autoregressions Stochastic volatility Regional and local expenditures

Main Article Content

Authors

Miguel Sebastiano Chalup Calmotti
Centro de Investigación Económica del Colegio de Economista (ciece), Colegio de Economistas de Santa Cruz (Santa Cruz de la Sierra, Bolivia).
Luis Fernando Escobar Caba
Universidad Autónoma Gabriel René Moreno y Centro de Investigación Económica del Colegio de Economista (ciece), Colegio de Economistas de Santa Cruz.

Abstract

This paper evaluates the impact of the fiscal policy applied in Bolivia during the Covid-19 crisis at a regional level. It includes two analyses: the economic slowdown at a regional level analyzed through a mixed frequency Bayesian var with a stochastic volatility model, and the impact and effectiveness of the fiscal policy using a time-varying parameter var model. The results indicate that the pandemic had a heterogeneous effect on the region’s economic activity and the capital expenditure from the national treasury was the most effective fiscal policy to reduce the recessive effects of the crisis. We also noted that some regions positively reacted to regional and local government capital expenditure.

How to Cite
Chalup Calmotti, M. S., & Escobar Caba, L. F. (2023). Macroeconomic Effects of Fiscal Policy during the Covid-19 Crisis: Evidence from Bolivia at a Regional Level. Revista Economía Del Rosario, 26(1), 1–39. https://doi.org/10.12804/revistas.urosario.edu.co/economia/a.13596
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