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2006•Applied Economics LettersRequires access

Is fiscal policy effective? Evidence for an emerging economy: Chile 1833–2000

Rodrigo Cerda, Hermann González, Luis Felipe Lagos

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Abstract

This paper studies the impact of fiscal policy on economic activity by using Chilean annual data from 1833 to 2000. The data allows us to disentangle the impacts on economic activity -- due to the large variation in fiscal policy in the period under study -- by using a SVAR methodology. The study finds evidence of non Keynesian impacts of fiscal policy.

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What this paper is about

This paper studies the impact of fiscal policy on economic activity by using Chilean annual data from 1833 to 2000. The data allows us to disentangle the impacts on economic activity -- due to the large variation in fiscal policy in the period under study -- by using a SVAR methodology. The study finds evidence of non Keynesian impacts of fiscal policy.

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OpenAlex reports 13 citations for this work. Citation counts describe recorded attention and do not establish research quality.

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Available abstract

This paper studies the impact of fiscal policy on economic activity by using Chilean annual data from 1833 to 2000. The data allows us to disentangle the impacts on economic activity -- due to the large variation in fiscal policy in the period under study -- by using a SVAR methodology. The study finds evidence of non Keynesian impacts of fiscal policy.

Key concepts: Economics, Fiscal policy, Macroeconomics, New Keynesian economics, Monetary policy, Monetary economics

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