Governments must collect the resources necessary to carry out their duties, regardless of the intensity with which governments intervene in society. Ultimately, to govern must be to tax in order to spent. Everything else, such as the intentions of governm

Chile mainly taxes consumption. In fact, indirect taxes collect about 75% of total revenue, and the income tax, which collects the remaining 25%, incorporates schemes that allow taxpayers to substract from their tax duties part of the flow of savings, app

This paper identifies the dynamic effects of fiscal policy on economic activity (GDP) in the Chilean economy. We use a structural vector autoregression (SVAR) methodology. The main results are: a positive fiscal expenditure shock has a negative effect on